Rising power demand from hyperscale data centers has put energy and utility stocks in focus. Southern Company (SO) owns regulated utilities Georgia Power and Alabama Power, has EPA approval for 10 gigawatts of new generation, and signed a 25-year, 3.2-GW contract for OpenAI's campus in Effingham County, Georgia, while offering a 3.3% dividend yield. Constellation Energy (CEG) is a merchant power producer that has signed long-term power purchase agreements with Microsoft, Alphabet, Meta Platforms, Walmart and Amazon. Its 20-year Microsoft deal adds 835 MW, including the restart of Three Mile Island Unit 1, while the Alphabet deal adds 890 MW through nuclear uprates across 11 reactors. The article says Southern suits more conservative investors, while Constellation suits those who can tolerate more volatility, and the stock is down 34% over the past year.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
electricitydata centersdividends
Open a keyword to see other news on the same topic.
Related news
- Entergy Just Raised Its Dividend 6.3%. Can Cash Flow Support the Increase?
Entergy has raised its quarterly dividend by 6.3% to $0.68 per share, or $2.72 annually, for a forward yield of about 2.47% at a recent price of $110.14. The new payout equals 61% to 64% of 2026 adjusted EPS guidance of $4.25 to $4.45. Industrial sales volume rose 14.9% in the first quarter and 10% in the second, mainly driven by data center contracts, including a 20-year agreement with a Meta Platforms subsidiary in Louisiana. However, in 2025 Entergy spent $7.68 billion on capital projects against $5.15 billion of operating cash flow, so it relies on outside financing, and higher interest costs and share dilution are named as key risks. The article argues the raise looks sustainable given the payout below two-thirds of guided earnings, but readers can compare it with upcoming third-quarter results.
- Entergy (ETR) Stock Appears Rich On A 150% Three Year Run
Entergy's shares trade around US$107.5 after a total return of 150.1% over the past three years, and the article questions whether its dividend stream can justify that valuation. A Dividend Discount Model assumes dividends grow 3.7% a year, with a payout ratio of about 61% and a reported return on equity of just over 11%. The model's estimated intrinsic value falls substantially below the current price, suggesting the market is attaching a rich valuation to the income stream. The article also notes a planned US$600 million Arkansas grid expansion backed by a 20-year Google contract, and cites a 28.6x P/E as a separate lens on the share price.
- NiSource (NI) Stock Looks Overvalued Against Its Dividend Outlook
NiSource has nearly doubled shareholders' money over the past five years, delivering a 97.6% total return, which raises the question of whether dividends can justify the current share price. The article highlights a new 20-year energy agreement with Microsoft, including customer-funded grid upgrades and long-term electric service for data centers, which may affect future capital needs and cash-flow visibility. Using a Dividend Discount Model with inputs of about $1.35 dividend per share, roughly 9.07% return on equity, a payout ratio slightly above 61%, and implied dividend growth of about 3.5%, the estimated intrinsic value sits meaningfully below the current share price of $41.95. The model still does not bridge that gap, suggesting income investors are paying a premium for a relatively steady payout with modest assumed growth.
- This Dividend King Is Getting In on the AI Energy Boom With Its Recent Deal with Google. Is It a Buy?
Black Hills (BKH), a regulated utility with 56 years of consecutive dividend increases, has signed agreements with Google to provide energy infrastructure for its hyperscale data center campus in Cheyenne, Wyoming, running through 2048. The deal includes 2.7 GW of power: 590 MW grid-connected and 2.1 GW from a privately managed off-grid microgrid. Black Hills will invest $1.8 billion to build 564 MW of natural gas generation between 2027 and 2029, while Google provided $399 million in refundable advances. At peak load in 2030, the company projects $150 million in annual net income, compared with $292 million in 2025 net income. Wyoming has become a data center hub, with Wyoming Electric's peak load reaching a record 439 MW, and Microsoft and Meta are also building there.
- How to Earn $600 a Month From a Company That Builds and Operates Power Plants for Data Centers
Data centers need large amounts of power, and Southern Company (SO), an electric utility owner and operator, stands to benefit. The stock offers a 3.4% dividend yield paid quarterly; the article estimates that earning an average of $600 a month ($7,200 a year) would require investing about $212,000 at the current price. Data center electricity use across the system grew 55% year over year in the second quarter, and active data center load exceeded 1.2 GW, up 500 MW from a year earlier. The company has over 17 GW of large-load agreements coming online through the mid-2030s, including a 25-year, 3.2 GW contract for Georgia Power to serve OpenAI's data center campus in Effingham County. It plans to build 10 GW of new generation and, with Google, is uprating the Vogtle and Hatch nuclear plants to add 96 MW.
- Ex-Dividend Calendar for November 2–6: Highest Cash Dividend Rate at 100%
About 17 companies have announced ex-dividend dates for the week of November 2–6, and 14 of them will pay cash dividends ranging from nearly 1% to 100%. Quang Ninh Thermal Power (QTP) will pay an advance 2026 dividend of 7%, or VND 700 per share, with a record date of November 6 and an expected payout of about VND 315 billion, while EVNGENCO1, the largest shareholder, holds about 42%. Son La Sugar (SLS) will pay a 100% cash dividend, or VND 10,000 per share, with a record date of November 3 and a total outlay of about VND 98 billion, down from 150% in the prior fiscal year as after-tax profit fell nearly 49%. PC1 Group will pay its 2025 dividend in shares at a 15% ratio, while also offering over 74 million shares to existing shareholders at VND 20,000 each to raise about VND 1,481 billion.
Related markets
Latest news
- MPLX Reports Earnings on Nov. 3, 2026. Here's What Investors Should Be Watching.
MPLX will report third-quarter results on Tuesday, Nov. 3, after management said the third quarter should be stronger than the second, and the fourth stronger still. The MLP spent $5.5 billion on growth projects and acquisitions last year and plans $2.9 billion in growth capex in 2026, aiming for mid-single-digit adjusted EBITDA growth. First-half adjusted EBITDA reached $3.5 billion, up less than 2% year over year, so the second half must accelerate. The article estimates third-quarter adjusted EBITDA near $1.85 billion, versus nearly $1.8 billion in the second quarter. The board declared a third-quarter distribution of $1.2111 per unit, up 12.5% year over year, making distribution coverage (1.3x at the end of the second quarter) and leverage (3.7x, versus a 4.0x target) key metrics to watch.
- Learn Why The Bull Case For JPMorgan Chase Stock Could Change Following Earnings Miss
JPMorgan Chase reported third-quarter earnings below expectations for the first time since 2023, while raising its 2026 net interest income outlook to about US$106.2 billion. The bank is cutting share buybacks and raising its dividend, directing capital toward technology, AI and franchise investment and accepting higher noninterest expenses rather than maximizing near-term payouts. It is also issuing multiple callable senior unsecured notes maturing between 2031 and 2056, with coupons mostly in the 5.5% to 6.7% range, signaling a focus on balance sheet flexibility and long-dated funding. The article notes that a weaker credit or capital markets environment combined with elevated spending could squeeze margins and returns. Consensus figures project revenue of US$227.1 billion and earnings of US$68.8 billion by 2029, based on an assumed 6.8% annual revenue growth rate, an increase of about US$5.2 billion from current earnings of US$63.6 billion.
- Barclays Says a SpaceX Merger Is Now "a Key Part" of the Tesla Bull Case. Here's Who Actually Wins if It Happens -- and Who Pays.
On Space Exploration Technologies' (SPCX) third-quarter conference call, CEO Elon Musk said he thought a merger with Tesla was a good idea, and the two companies have each formed a special committee to explore a combination. Barclays says such a deal would likely be funded largely or entirely through stock, and Tesla shareholders could benefit given SpaceX's market capitalization of roughly $2 trillion compared with roughly $1.55 trillion for Tesla. Barclays upgraded Tesla from equal weight to overweight and raised its one-year price target from $370 to $450 per share, a level that matches its expected all-stock buyout value, a premium of roughly 20% over the current price, or about 3.1 SpaceX shares per Tesla share. The deal would need a 50% affirmative vote from Tesla shareholders, with investors who do not vote counted as "no" votes, and Musk controls about 20% of voting power but would still likely need meaningful retail investor support. The article also notes that heavy dilution from new SpaceX share issuance to fund a deal makes the post-deal outlook for SpaceX stock harder to predict.
- Centerra Gold Inc (CGAU) (Q3 2026) Earnings Call Highlights: Record Buybacks, Lower Mount ...
Centerra Gold reported third-quarter adjusted net earnings of $72 million, or $0.37 per share, with operating cash flow of $143 million and free cash flow of $17 million. The company bought back a record $53 million of shares in the quarter, bringing year-to-date repurchases to $125 million, and declared a quarterly dividend of $0.07 per share. Mount Milligan's third-quarter all-in sustaining cost on a byproduct basis was $985 per ounce, and full-year guidance was lowered to $1,100–$1,200 per ounce from $1,200–$1,300, supported by copper by-product credits. The Thompson Creek restart is about 75% complete with first molybdenum production expected in mid-2027, though molybdenum prices cannot be hedged and Mount Milligan costs are tracking about 5% above budget. Cash fell roughly $50 million in the quarter, and the company plans to hold only $100–$200 million in cash, with total liquidity of $998 million.
- Prediction: Nvidia Stock Is Going to Soar After Nov. 17
Nvidia's market capitalization tops $5 trillion, and its stock is up nearly 15% in 2026. Revenue in the fiscal 2027 second quarter reached $96.2 billion, up 106% year over year, with a 75% non-GAAP gross margin. The company forecasts about $108 billion in third-quarter revenue, while analysts expect about $109 billion. CEO Jensen Huang sees global AI infrastructure spending reaching $3 trillion to $4 trillion by 2030, and the Vera Rubin platform could generate $40 billion per gigawatt, 60% more than Blackwell. Nvidia trades at about 23 times forward earnings versus 18.6 for the S&P 500, which the author considers reasonable given its growth; the company reports on Nov. 17.
- Intuitive Surgical Stock Just Fell Despite a 22% Revenue Jump. Here's What Investors Are Missing.
Intuitive Surgical (ISRG) shares fell after the company reported earnings, despite a 22% jump in revenue. The article argues the real revenue driver is not da Vinci robot sales, which account for roughly 25% of revenue, but instruments, accessories, and services. Although Medtronic and Johnson & Johnson have entered surgical robotics, Intuitive sold more da Vinci systems in Q3 2026 than in Q3 2025, and procedures rose 15% while installed systems grew 12% year over year. With more than 12,000 installed systems generating recurring income, the article says the company still has room to grow as surgical robotics is far from saturation.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.