When the market starts to wobble, most portfolios feel it. Growth names that looked unstoppable suddenly give back months of gains in a week. Then, even the bluest of blue chips can feel like small boats in a squall… But in this environment, there’s one place in the market where you’ll find solace even if tariffs start up again and act as a ballast. That’s utility stocks.
Demand for power and water does not follow the business cycle, and regulators allow utilities to recover the cost of new wires, pipes, and plants through monthly bills that arrive like clockwork. The result is a stream of cash that management can turn into dividends that show up just as reliably as the services themselves.
Moreover, that stability is paired with unusually generous yields. The icing on the cake is that this sector is not impacted much by tariffs and is benefiting indirectly from AI tailwinds.
Here are three to look into:
Avista (AVA)
Avista Corporation (NYSE:AVA) is a regulated electric and natural gas utility company that mainly operates in the Pacific Northwest. It operates across the entire energy value chain for its regulated utilities. Most of its revenue comes from regulated utility operations, so the revenue is consistent and reliable. It was one of the quickest to recover from the 2008 downturn.
AVA stock had some sharp ups and downs in the past, but it has settled into a range where it looks to be a very dependable holding and dividend-payer. Analysts expect EPS growth at 8.3% this year and 10.81% next year, with revenue growth creeping up from 1.68% this year and 4.32% next year, with more acceleration down the line.
The stock gets you a forward dividend yield of 5.02%, with a payout ratio of 86.55% and 22 consecutive years of dividend growth on record.
Snam SpA (SNMRY)
Snam SpA (OTCMKTS:SNMRY) is an Italian utility company. It mainly deals with energy infrastructure, specializing in natural-gas-related operations. The company has transmission pipelines, LNG terminals, and storage facilities. All of these remain in hot demand as Europe re-routes its energy sourcing.
SNMRY stock has been consistently trading in a band from $9 to $12. It is in the upper range of the band today, but reinvesting those dividends should keep you ahead in the long run, even if it were to decline to the lower range of its historical band. I believe that’s unlikely, considering the broader environment is more favorable for the business. LNG infrastructure is experiencing significant expansion, with Italy’s regasification capacity potentially tripling from 16.1 bcm in 2022 to 47.5 bcm by 2026.
The company is making big investments to take advantage of that growth, and revenue is expected to grow 12.7% to $4.5 billion in 2025.
SNMRY comes with a 5.22% dividend yield.
Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners (NYSE:BEP | BEP Price Prediction) is a limited partnership that owns and operates renewable power assets worldwide. The company sells clean energy and has a large installed capacity that is increasingly more in demand due to the AI build-out.
BEP stock soared nearly 200% from late 2018 to early 2021 and corrected by over 50% from its peak. It is now in a steadier situation, with the valuation aligning with historical levels. Growth is accelerating due to electricity demand, with Q2 2025 revenue growing 14.2% year-over-year. EPS beat estimates by 44% and revenue beat estimates by 2.63% in the same quarter.
Analysts expect FFO growth of 13.2% for the full year and almost 14% revenue growth. The company’s forward FFO of $2.07 comfortably covers the forward dividend rate of $1.49.
The forward yield is 5.27%, and dividends have been raised for 10 consecutive years. As growth accelerates more, BEP stock has plenty more room to run.
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