Southern Co/The

Southern generates revenue through producing and distributing electricity to millions of residential, commercial, and industrial customers across Georgia, Alabama, Mississippi, and Florida. The company operates coal, natural gas, nuclear, and renewable power plants, earning returns on rate base through regulated utility models. Southern makes money from regulated electricity rates approved by state commissions, earning allowed returns on capital investments in generation, transmission, and distribution infrastructure.

Southern offers stable, regulated utility earnings with predictable cash flows supporting consistent dividends. The company benefits from population and economic growth in the Southeast, constructive regulatory environments, and ongoing infrastructure investments earning allowed returns. Strengths include strong credit ratings and diversified fuel mix. Risks include regulatory challenges recovering capital costs, nuclear project execution at Plant Vogtle, coal plant retirement costs, renewable energy transition requirements, and weather variability affecting demand. The stock provides dividend income with utility-sector stability.

Southern competes primarily with other regulated utilities in adjacent territories rather than direct competition for customers. Duke Energy operates in the Carolinas and Florida with overlapping service areas. NextEra Energy serves Florida through Florida Power & Light. Dominion Energy and Entergy operate in nearby southeastern states. Competition occurs primarily for regulatory approval of rates and capital projects, attracting industrial customers to regions, and securing renewable energy development opportunities rather than retail customer competition in monopoly territories.

Southern pays a quarterly dividend yielding approximately 3.25%, making it attractive for income investors seeking stable utility exposure. The company has a long history of consistent dividend payments and modest growth, reflecting the regulated utility business model with predictable cash flows. Southern targets a sustainable payout ratio allowing continued infrastructure investments while returning substantial cash to shareholders. The dividend is supported by rate base growth, regulatory cost recovery, and customer growth in southeastern markets.

SO last closed at $93.98, up 0.25% in the most recent trading session. Over the past 52 weeks, the stock has traded between a low of $83.09 and a high of $100.84. The current price represents 61% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 32 analysts covering SO, the consensus rating is Hold — 14 rate it a buy, 16 hold, and 2 sell. The average price target sits at $222.12, implying 136% upside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Southern Co/The generated $28.53B in revenue during fiscal year 2026, with $4.38B reaching the bottom line as net income. The net profit margin of 15.4% is solid for its sector.

SO trades at a P/E ratio of 24.08 on trailing earnings of $3.92 per share. That's roughly in line with the broader market average of ~20-25x. Comparing this multiple against Utilities sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: +7.81% (3M), -0.58% (6M), +7.12% (1Y), +7.80% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether SO is outperforming or lagging the broader market.