Southern Company raises dividend to $2.96 per share

ATLANTA - Southern Company (NYSE: SO), a leading energy provider with a market capitalization of $99 billion, has announced an increase in its annual dividend, marking the 77th consecutive year of maintaining or increasing its common stock dividend. According to InvestingPro data, the company has raised its dividend for 23 consecutive years, currently offering a 3.14% yield. The dividend has been raised by 8 cents per share to an annualized rate of $2.96.

The company also declared a regular quarterly dividend, which reflects a 2-cent increase from the previous quarter, amounting to 74 cents per share. This dividend is scheduled to be paid on June 6, 2025, to shareholders of record as of May 19, 2025.

Southern Company’s Chairman, President, and CEO, Christopher C. Womack, attributed this development to the efforts of the company’s employees, stating, "Today’s action by the Southern Company board was made possible by the hard work, dedication, and commitment to excellence from our more than 28,000 employees." He added that the company’s board aims to deliver regular, predictable, and sustainable dividend growth supported by the robust performance of its regulated utilities and energy infrastructure under long-term contracts. The company’s commitment is reflected in its solid financial performance, with revenue growth of 5.83% over the last twelve months and a conservative beta of 0.37, indicating lower volatility compared to the broader market.

The Atlanta-based energy giant serves 9 million customers across the Southeast and operates a portfolio that includes electric companies in three states, natural gas distribution in four states, and a competitive generation company, among other assets. Southern Company has set a target of achieving net-zero greenhouse gas emissions by 2050, aligning with its dedication to innovation, resilience, and sustainability.

Investors are cautioned that forward-looking statements provided by the company, such as expectations concerning dividend growth, are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from these projections include regulatory changes, legal proceedings, competition, and economic conditions, among others detailed in Southern Company’s filings with the Securities and Exchange Commission. InvestingPro analysis suggests the stock is trading above its Fair Value, with a P/E ratio of 22.48x. For deeper insights into Southern Company’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 6 additional ProTips and over 30 financial metrics.

The information in this article is based on a press release statement from Southern Company.

In other recent news, Southern Company has reported several significant developments. The company announced the issuance of $1.8 billion in junior subordinated notes with a 6.375% fixed-to-fixed reset rate, due in 2055, as part of their financial strategy to support corporate purposes such as infrastructure investment and debt repayment. BofA Securities raised Southern Company’s stock price target to $96 while maintaining a neutral rating, reflecting updated earnings projections and price-to-earnings multiples. Similarly, JPMorgan upgraded Southern Company’s stock from Underweight to Neutral, citing the company’s defensive characteristics and strong economic support in its service territories, despite uncertainties with the Georgia Power rate case.

In corporate leadership news, Southern Company Gas appointed Walt Farrell as CEO of Atlanta Gas Light and Chattanooga Gas, emphasizing his experience in economic development to meet growing energy demands. Additionally, Southern Company announced the election of James O. Etheredge as an independent director to its Board, bringing extensive experience from his tenure at Accenture. These changes align with Southern Company’s objectives of innovation and leadership in the energy sector. These developments reflect Southern Company’s ongoing efforts to strengthen its financial and operational framework amid evolving market conditions.

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