The Southern Company is an electric utility holding company based in Atlanta Georgia and serving primarily the southeastern United States. It is one of the largest utility companies in the U.S.
The Southern Company is a typical electric utility. It uses a great deal of leverage, but not excessive given the non-cyclical nature of its business. It has a very low beta and low stock price volatility. Its growth prospects are also very limited and not spectacular.
The most remarkable feature about SO is its generous dividend and low Dividend/Cash Flow from Operations ratio. Its Dividend/CFOp is 0.315; consequently its dividend looks safe and well covered.
SO is a very good company, but it is also trading near its all-time high. We like the company, but we see no real bargain in the stock.
Still, many would consider SO one of the best monthly dividend stocks available. If you are extremely risk-averse, it is hard to go wrong with a company as solid as SO that pays a 4.31 percent dividend yield.
Stat Sheet – Southern Company 4/6/16
|Market Cap||$ 45,828|
|Sales Stability||Above Average|
|Price Volatility||Below Average|
If you would like to see more top dividend paying stocks as well as other types of stocks we feel hold greater promise than SO, click the following link.