Eversource Pays More Than Southern, but Regulation Tests the Gap

Eversource offered a 5.0% dividend yield in the source comparison, versus 3.7% for Southern Company. It also grew its dividend faster from 2020 through 2025. The higher income is real, but it comes as a regulatory decision reduced Eversource's transmission return and pressured 2026 earnings.

Eversource's recurring earnings were $4.76 a share in 2025. Management now guides to $4.57 to $4.72 for 2026 after the Federal Energy Regulatory Commission cut the base return on equity for New England transmission owners from 10.57% to 9.57%. The company recorded a $43.9 million after-tax charge in the first half and expects the lower return to affect future earnings.

The $1.7 billion net proceeds from selling Aquarion Water helped reduce parent debt. That strengthens funding, but it also removes a business that contributed earnings. Eversource still targets 5% to 7% annual EPS growth from a $4.65 base through 2030.

Southern's second-quarter earnings benefited from utility investment, customer growth and usage. Data-center demand supports its long-term outlook, but Southern expects to issue about $1.1 billion of equity by 2030. Its dividend has risen more slowly, while the lower starting yield means less current income.

The source calculated that $10,000 could produce about $6,530 of Eversource dividends over 10 years if a 5.8% growth rate persists, versus about $4,235 for Southern at 3.0% growth. That is a scenario, not a forecast. It assumes stable starting yields and uninterrupted dividend growth.

Eversource wins the income comparison only if earnings recover enough to support the assumed raises. Southern offers the cleaner near-term earnings trend. Investors should watch Eversource's transmission return proceedings and debt reduction, alongside Southern's data-center commitments, capital spending and equity issuance.