Southern and Eversource Diverge on Yield, Growth, and Regulatory Risk
Eversource offers a 5.0% yield and faster recent dividend growth, while Southern Company yields 3.7% and has benefited from rising data-center power demand. Southern's normalized EPS is expected to rise 7% in fiscal 2026, whereas Eversource's is projected to dip to $4.65 before recovering. Eversource is awaiting a FERC decision on transmission returns by Nov. 30.
Southern's recent earnings momentum is tied to data-center electricity use, which jumped 55% year over year in 2026's second quarter, and it has a 25-year contract to supply OpenAI in Georgia. Its dividend has increased annually for decades, though the company still anticipates needing $1.1 billion in fresh equity by 2030.
Eversource is contesting a FERC cut to its permitted transmission return, from 10.57% to 9.57%, after transmission earnings fell. It raised roughly $1.7 billion by selling Aquarion to lower parent debt and expects no new shares this year.
Utility shareholders may weigh higher current income against regulatory and balance-sheet risks. Households and businesses in service territories could be affected if transmission returns, data-center demand, or infrastructure spending influence future rates and reliability. The FERC decision and Southern's large-load contracts may shape how costs and benefits from grid upgrades are distributed, though outcomes remain uncertain.