A steady grid, a nuclear engine running near full tilt, and a beta of just 0.53 make this Northeast utility one of the calmer names in the portfolio.
The company runs as a regulated electric and gas utility across one of the most densely populated parts of the country, and it pairs that base with a large nuclear generation fleet that produces carbon-free power around the clock. Growth is coming from steady spending on grid upgrades and a wave of new demand tied to data centers, though management has said only a small share of the requests in that pipeline typically get built. The main pressure point sits with regulators, who are reviewing utility rate structures at the same time this company plans to file a new rate case before the end of the year.
That regulatory backdrop matters because it shapes how much of the company’s capital spending gets recovered through customer bills, and it will influence earnings growth over the next few years. Even so, the underlying business rests on a captive customer base, a dividend paid every year for more than a century, and a nuclear fleet that keeps producing power regardless of what happens in the broader market.
That mix of predictability and modest upside is why we increased our position in this stock within the Dividend Protection Stocks Portfolio. The move reflects our continued confidence in a defensive, income-focused holding that fits the portfolio’s goal of protecting capital while still paying a dependable dividend.
