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Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. Southern, Xcel Energy and Royalty Pharma have rewarded their shareholders for several decades and recently announced dividend increases. Furthermore, these companies offer high dividend yields of over 3%.

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The Southern Company 

The Southern Company (NYSE:SO) generates, transmits and distributes electricity. Incorporated in 1945 and headquartered in Atlanta, Georgia, it is one of the largest utilities in the U.S. It serves nine million customers with vertically integrated electric utilities in three states and natural gas distribution utilities in four states. 

Southern has raised its dividends every year for the last 23 years. According to the company's most recent dividend hike announcement on April 22, its Board of Directors increased the quarterly dividend from $0.70 to $0.72, equal to an annual figure of $2.88 per share. Currently, the dividend yield on the stock is 3.11%.

The company's annual revenue (as of June 30, 2024) is $26.1 billion. According to Southern’s most recent earnings release on Aug. 1, it generated revenues of $6.46 billion and an EPS of $1.10 for Q2 2024. Both figures exceeded Street estimates.

Check out this article by Benzinga to learn about Southern’s recent short interest.

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Xcel Energy

Xcel Energy (NASDAQ:XEL) generates, purchases, transmits, distributes and sells electricity. It is also one of the largest renewable energy owners and suppliers in the U.S., with more than half its electricity sales coming from carbon-free energy. Xcel manages utilities serving 3.8 million electric customers and 2.1 million natural gas customers in eight states. 

The company raised dividends every year for the past 21 years. Xcel Energy’s news release on Feb. 21 increased the quarterly dividend by 5.3% to $0.5475 per share, equal to an annual rate of $2.19 per share. The current dividend yield on the stock is 3.45%.

The company’s annual revenue (as of June 30) stood at $13.8 billion. According to its most recent earnings report, issued on Aug. 1, it posted revenues of $3.03 billion and an EPS of $0.54 for Q2 2024, both of which were below consensus estimates.

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Royalty Pharma 

Royalty Pharma plc (NASDAQ:RPRX) is a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in identifying, evaluating and acquiring royalties on various biopharmaceutical therapies.

Royalty Pharma has raised its dividends every year since 2020. On Jan. 19, the company announced its most recent dividend hike, increasing the quarterly dividend by 5% to $0.21 per share or $0.84 annualized. Currently, the dividend yield stands at 3.03%.

As of June 30, Royalty Pharma's annual revenue stood at $2.2 billion. According to the company's most recent earnings release on Aug. 8, it generated Q2 2024 revenues of $537 million and an EPS of $0.96, below consensus estimates.

Check out this article by Benzinga, which looks into Royalty Pharma’s recent short interest.

Southern, Xcel Energy and Royalty Pharma are good choices for investors seeking reliable passive income. Their dividend yields of over 3% and long history of consistent hikes make them attractive to income-focused investors.

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The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.

Arrived Homes, the Jeff Bezos-backed investment platform, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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This article Why Southern, Xcel Energy And Royalty Pharma Are Winners For Passive Income originally appeared on Benzinga.com