No…I don’t typically go for utility stocks. Too boring. But when the bear comes town then boring becomes beautiful as one of the only ways to stay ahead of the market.

So yes, I do believe we are still very much in the midst of a bear market and the last few weeks has been nothing more than a ferocious, yet typical, bear market rally. You can read more about why in my recent article: New Bull Market? Or New BS?

Add it all up and it’s once again time to look around for the best utility stocks for the safety of stock price and the benefit of attractive dividend income. These 3 stand out above the crowd: Southern Company (SO), Brookfield Renewable Partners LP (BEP), and Covanta Holding Corporation (CVA).

Southern Company (SO)

If there is one thing humanity will always need, it is electricity.  Southern Company provides this essential utility to those living in the southeastern portion of the United States.  SO is also one of market’s most stable stocks, providing a dividend of 4.44%.  SO has hovered between $45 and $70 across the past five years yet the stock has trended upward of late, providing hope for a bullish 2020.

SO is a defensive stock that investors will likely continue flocking toward during this period of uncertainty.  Yet during good times, like 2019 Southern Company actually rallied 51% on the back of impressive earnings growth. So SO is not your typical sleepy utility stock. Also take a look at SO’s history of dividend increases and you will agree, this is a suitable safe haven investment to “park” your money as the market volatility continues. Truly SO should be at the top of any list of utility stocks when you are ready to face that 22 million jobs lost in the last 4 weeks = more bear market downside for the overall market.

Brookfield Renewable Partners LP (BEP) 

The days of strict reliance on traditional forms of energy are quickly coming to an end.  Renewable energy is on the rise, helping to power our planet’s booming population while preserving the planet for future generations.  BEP investors will benefit from this trend.

BEP has a portfolio of renewable power facilities ranging from wind facilities to hydroelectric generation stations and beyond.  BEP’s renewable power stations are located throughout North America and Brazil.  BEP investors currently receive a 4.73% dividend.

Though BEP slid down to $30.74 on March 23, the stock rebounded quite nicely, ascending right back up to $42.75 merely three days later.  At the moment, BEP trades around $44.  Invest in BEP, collect your dividend, hold for the long haul and this budding renewable energy superstar will likely move well beyond its 52-week high of $57.69.  In fact, TipRanks reports analysts have set a high forecast of $59 for the stock.

Covanta Holding Corporation (CVA)

OK…this is the riskier one of the group, but the ample reward more than makes up for it. Now imagine a future in which it is possible to generate energy from waste.  Though few know it, this phenomenon is possible today thanks to CVA.   The company makes money from waste disposal and the subsequent creation of electricity as well as steam.  CVA’s energy-from-waste process also creates metal that the company sells for additional profit.

CVA has beaten earnings estimates by a meaningful margin in three of the past four quarters.  Though CVA’s stock has declined amidst the market-wide sell-off, TipRanks average analyst price target is $13.  Compare that to its current price of $7.51 and you will appreciate the serious value proposition.  CVA’s ever-growing free cash flow should also help boost its dividend in years to come.

Want more great investing ideas?

7 “Safe-Haven” Dividend Stocks for Turbulent Times

Is This a “Suckers Rally”?  – Is this truly a new bull emerging or just a bear market rally?

Reitmeister Total Return portfolio – Learn Steve Reitmeister’s unique strategies that are producing profits in the midst of the bear market.

SO shares were unchanged in premarket trading Thursday. Year-to-date, SO has declined -11.47%, versus a -13.19% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

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