3 Utility Stocks Yielding 5%+ for Volatile Markets

When market volatility strikes, most portfolios experience significant turbulence. Growth stocks that appeared unstoppable can surrender months of gains in mere weeks, while even blue-chip investments can feel unstable. However, utility stocks provide a unique sanctuary during such periods, offering stability through their essential service nature and regulatory protection. Demand for electricity, natural gas, and water remains consistent regardless of economic conditions, creating a reliable revenue stream that forms the foundation for dependable dividend payments.

The regulatory framework surrounding utilities provides additional security. Regulators allow these companies to recover the costs of infrastructure investments—including new wires, pipes, and plants—through monthly customer bills that arrive with clockwork regularity. This creates predictable cash flows that management can convert into dividends that appear as reliably as the services themselves. Furthermore, the utility sector demonstrates remarkable resilience to tariff pressures, making it particularly attractive during periods of trade uncertainty. The sector also benefits indirectly from artificial intelligence tailwinds, as AI development drives increased electricity demand.

Avista Corporation (NYSE:AVA) operates as a regulated electric and natural gas utility primarily serving the Pacific Northwest region. The company spans the entire energy value chain for its regulated utilities, with the majority of its revenue derived from these stable, regulated operations. This revenue consistency has proven durable through economic cycles—Avista was one of the quickest utilities to recover from the 2008 financial downturn, demonstrating its resilience.

While AVA stock has experienced volatility in the past, it has settled into a range that positions it as a dependable holding for income-focused investors. The company shows promising growth prospects, with analysts projecting EPS growth of 8.3% this year and 10.81% next year. Revenue growth is expected to accelerate from 1.68% this year to 4.32% next year, with further acceleration anticipated. Investors receive a forward dividend yield of 5.02%, supported by a payout ratio of 86.55% and an impressive track record of 22 consecutive years of dividend growth.

Snam SpA (OTCMKTS:SNMRY), an Italian utility company specializing in energy infrastructure, focuses primarily on natural gas operations. The company maintains transmission pipelines, LNG terminals, and storage facilities—all critical assets as Europe continues to reroute its energy sourcing following geopolitical shifts. SNMRY stock has consistently traded within a $9 to $12 range, currently sitting near the upper end of this band.

The company stands to benefit significantly from Europe’s ongoing energy infrastructure expansion. Italy’s regasification capacity is projected to potentially triple from 16.1 billion cubic meters in 2022 to 47.5 billion cubic meters by 2026. Snam SpA is making substantial investments to capitalize on this growth, with revenue expected to increase by 12.7% to $4.5 billion in 2025. Despite trading near the upper range of its historical band, reinvesting the company’s 5.22% dividend yield should provide long-term returns even if the stock price experiences temporary declines.

Brookfield Renewable Partners (NYSE:BEP), a limited partnership that owns and operates renewable power assets globally, represents the convergence of utility stability and growth potential. The company sells clean energy through a substantial installed capacity that’s experiencing increased demand driven by the AI build-out and broader electrification trends. BEP stock demonstrated remarkable performance between late 2018 and early 2021, soaring nearly 200%, before correcting by over 50% from its peak.

The company now operates in a steadier environment with valuations aligning with historical levels. Growth is accelerating due to rising electricity demand, with Q2 2025 revenue growing 14.2% year-over-year. The same quarter saw EPS beat estimates by 44% and revenue exceed expectations by 2.63%. Analysts project FFO growth of 13.2% for the full year and nearly 14% revenue growth. The company’s forward FFO of $2.07 comfortably covers the forward dividend rate of $1.49, supporting a 5.27% yield that has been raised for 10 consecutive years. As growth continues to accelerate, BEP stock appears positioned for further appreciation.