The year 2024 brought many surprises in the financial markets, but one of the biggest was the unexpected recovery of the utility sector. This traditionally stable and defensive sector, which includes companies that provide essential services such as electricity, gas and water, experienced significant growth. Reasons include rising demand for electricity due to technological innovations, particularly in artificial intelligence (AI), support for clean energy and favourable interest rate conditions.

In this article, we therefore look at three major companies in the utility sector that are worthy of investor attention.

NextEra Energy $NEE: The renewable energy giant

One of the key companies in the utility sector is NextEra Energywhich combines traditional power generation with huge investments in renewable energy. The company is one of the leaders in wind and solar energy in the United States and is continually expanding its green energy capacity. The company benefits from government support for renewables and increasing pressure to decarbonise the energy sector, giving it strong growth potential.

NextEra Energy is attractive not only to investors looking for green investments, but also to those seeking stable dividend income. The company pays regular dividends while providing solid growth opportunities through its innovative renewable energy projects. The year 2024 is particularly significant for NextEra as its expansion into green energy puts it at the forefront of the energy market transformation.

Vistra $VST: Leader in nuclear and storage energy

Another company to watch is Vistra, a major player in power generation and energy storage. This company, which operates a number of nuclear power plants and large energy storage capacity, is on the cutting edge of the growing demand for clean energy and stable sources of electricity. In 2024, the company made several key acquisitions that strengthened its ability to generate and store electricity, allowing it to respond flexibly to increased demand.

Vistra is also a strong player due to its ability to respond quickly to new technological challenges, including growing electricity demands from data centers and artificial intelligence. Its energy storage capacity is one of the largest in the US, giving it an advantage in a market that is increasingly focused on energy supply stability and environmental sustainability.

Dominion Energy $D: Stability through nuclear power and clean technologies

A third company that has caught the attention of investors in 2024 is Dominion Energy, a company focused on a wide range of energy sources, including nuclear power and clean technologies. Dominion has long relied on diversifying its energy portfolio, and its nuclear power plants are a key part of its strategy to ensure stable energy production with minimal emissions.

In addition to nuclear power, the company is investing in new technologies and renewable energy projects to prepare for future growth. This makes Dominion Energy attractive to investors seeking stability combined with an environmental focus. Its ability to maintain high returns while growing through clean energy investments makes it one of the most promising companies in the utility sector.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source: Investing.com