Jefferies Financial Group has upgraded Southern Company (NYSE: SO) from “Hold” to “Buy,” with a new price target of $100. The investment bank cited Southern’s bold grid expansion plans as a central reason for the upgrade, particularly Georgia Power’s 70% stake in an 8.5 GW infrastructure buildout, estimated to require $12.9 billion in capital. This project is expected to substantially grow the company’s rate base and earnings potential over the next few years.
📊 In its latest earnings report, Southern impressed analysts with a 17% jump in year-over-year revenue, hitting $7.78 billion. Earnings per share also came in strong at $1.23, beating consensus estimates and showcasing efficient cost management and strategic execution. These results reinforced investor confidence in Southern’s direction and its ability to drive sustainable growth while maintaining a defensive utility profile.
💰 Southern’s dividend fundamentals are equally appealing. The company recently raised its quarterly dividend to $0.74 per share, a 2.8% increase, bringing the annual payout to $2.96. This yields approximately 3.3% at current prices. The dividend payout ratio hovers around 68%, signaling a healthy balance between rewarding shareholders and funding internal growth. Southern’s commitment to annual dividend hikes remains unbroken for over two decades, making it a cornerstone pick for income-focused investors.
🔎 With a solid strategic roadmap, reliable income stream, and positive analyst sentiment, Southern Company stands out as a reinvigorated opportunity in the utility space, backed by real capital deployment and earnings momentum.