Southern Company

Methodology

Southern Company's regulated electric utilities across Southeast states generate highly predictable earnings from approved rate cases and infrastructure investments. Regulatory frameworks create exceptional visibility into allowed returns. The stable regulated model makes earnings projections straightforward for this traditional utility holding company.

Methodology

Southern Company typically trades at moderate PEG ratios consistent with regulated utilities, reflecting infrastructure investment growth and Southeast customer additions. The metric should be compared to utility peers rather than broader markets. Regulatory treatment and capital spending recovery mechanisms drive valuation more than growth rate differences.

Methodology

Southern Company offers a substantial dividend typical of regulated utilities, making PEGY essential for total return evaluation. The dividend provides most of expected returns alongside rate base expansion. For traditional utility investors, dividend sustainability and regulatory relationships matter as much as growth metrics.