These 4 utility stocks have stable dividends and good dividend yields that should attract value investors. The four are:

• NRG Energy (NRG): Texas power utility with 20% forecast earnings trading for 9.8 times forward earnings and a 3.01% dividend yield;
• Edison Int'l (EIX): Electric utility company with a 4.0% dividend yield and a forward P/E of 14.4 times with good earnings growth;
• Pinnacle West Corp (PNW): A Southwest U.S. utility with steadily rising earnings and an 18.7 forward P/E and 4.3% dividend yield; and
• FirstEnergy Corp (FE): Akron utility, covering 5 mid-Atlantic states from Ohio to New York, with a 3.59% dividend yield, and an attractive forward P/E multiple of 17x.

Utility stocks are attractive for several reasons. They often have a monopoly to deliver energy in their area. That makes revenue and cash flow secure enough to maintain growing dividends. 

Second, they have moderate valuations and good dividend yields. Lastly, everyone needs to pay their electric bills even during a recession. That makes these stocks very defensive investments.

This list of utility stocks' P/Es (price-to-earnings) ranges from 9 to 18 times earnings. They also have dividend yields ranging from 3% to 5%.

NRG Energy (NRG)

This Houston-based integrated power company is one of the largest U.S. independent power producers. It has 6 million customers and generates 18 gigawatts of power generation capacity primarily in Texas.

NRG stock trades for just 11.7 times forward earnings for 2022 and 9.76x for 2023. It also provides a 3.01% yield with growing dividends. It is attractive to bargain-focused investors due to its nine years of continuously paid dividends.

Analysts forecast $3.96 in earnings per share (EPS) this year and $4.76 next year. So, trading at $46.45 as of May 27, NRG stock trades for 9.8 times 2023 earnings estimates.

Moreover, the company has plenty of FCF to cover both its dividends and buyback programs. Last year it generated $493 million in cash flow from operations. It paid out just $319 million in dividends plus $48 million in buybacks. This makes its ability to cover dividends very secure.

Edison International (EIX)

Edison is an electrical power generator in Southern, Central, and Coastal California with over 15 million customers. The company is forecast to produce $4.54 in EPS this year and $4.86 in 2023, a 7.0% growth rate.

At the opening price of $70.06 on May 27, this puts EIX stock on a forward P/E of 14.4 times. Moreover, given its $2.80 annual dividend, EIX stock has a dividend yield of 4.0%.

EIX has paid a dividend for the past 18 years on a quarterly basis. The dividend has risen every year for the past 18 years. That should give investors comfort that this will occur in the future, recession or not. 

Pinnacle West Corporation (PNW)

Pinnacle West, which runs Arizona Public Service Company, is a Phoenix, AZ-based electric utility with good earnings growth and a reasonable valuation. Revenue is forecast to rise 3.1% in 2023 to $3.89 billion and 4% in 2024 to $4.05 billion. In addition, analysts forecast that EPS will rise from $3.97 (normalized diluted earnings) to $4.04 this year and $4.22 next year.

As a result, as of May 27, at $78.72, PNW stock trades on a forward 18.7 times P/E multiple. That is slightly lower than its average P/E over the past five years. Morningstar says that its average has been 17.7 times.

In addition, PNW has a $3.40 dividend which puts PNW stock on an ample dividend yield of 4.3%. In fact, PNW has paid dividends annually for the past 28 years and in the last 10 years, the dividend has risen each year.

FirstEnergy Corp (FE)

This is an Akron, Ohio electric utility that operates in six Mid-Atlantic states from Ohio to New York with 6 million customers. Analysts forecast EPS growth of 6% to $2.55 in 2023. 

At $43.43 per share on May 27, FE stock has a forward P/E multiple of 17 times. That is lower than its average forward P/E of 23.6 over the past five years, according to Morningstar.

FirstEnergy also pays a solid $1.56 dividend, giving it a 3.59% yield. It has paid dividends for the past 24 years, although dividends have stayed level for a good number of years.