SO - The Southern Company: Onboarding New Nuclear Plants
2024-02-09 06:50:48 ET
Summary
- The Southern Company operates in electricity, natural gas, and other sectors, serving millions of customers across multiple states.
- After long delays, Southern's Georgia Power subsidiary is bringing online two 1114-megawatt nuclear power plants, whose no-emissions fueling is newly in demand again.
- Although this $73-billion market cap company is classically low-beta at 0.50, its dividend rate of 4.18% faces stiff competition from less-risky US Treasuries.
Broadly, I suggest The Southern Company (SO) as a hold for now because it is not bargain-priced and interest rates remain higher than historical rates, making them competitive with the company's dividend.
Southern's larger subsidiaries are electric utilities; it also has natural gas distributors, a generating subsidiary, a nuclear power subsidiary, and an infrastructure subsidiary....
The Southern Company: Onboarding New Nuclear Plants