Southern Company

SO|Utilities|Utilities - Regulated Electric|$91.80|P/E 24.7|MCap 109.0B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

Safe

SO's dividend appears safe and well-supported. Strengths include a 75.7% earnings payout ratio & 30.0% cfo payout ratio. Areas of concern: 88.1% fcf payout ratio & 2.5x interest coverage. As a utility, higher payout ratios and leverage are typical for this regulated sector.

Based on 15 of 15 metrics

Strengths

Dividend Streak: 11+ yrsLong, uninterrupted dividend track record.
Dividend Cut: NoneNo dividend cut in recent history.
Earnings Stability: GrowingEarnings have been stable and supportive of the dividend.

Risks

Current Ratio: 0.6xLimited short-term liquidity to meet obligations.
FCF Payout Ratio: 88.1%Free cash flow is tight relative to the dividend.
Interest Coverage: 2.5xInterest coverage is thin relative to debt servicing.

Payout & Coverage

Caution

Earnings Payout Ratio

75.7%Safe

FCF Payout Ratio

88.1%Warning

CFO Payout Ratio

30.0%Safe

Interest Coverage

2.5xWarning

Balance Sheet

Caution

Net Debt / Total Assets

46.5%Caution

Current Ratio

0.6xDanger

Debt-to-Equity

190.6Safe

Profitability

Safe

Return on Equity

11.0%Caution

Operating Margin

12.7%Caution

Gross Margin

46.5%Safe

Profit Margin Stability

StableSafe

Dividend Track Record

Very Safe

11+ yrsVery Safe

NoneVery Safe

3.0%Caution

GrowingVery Safe

About Southern Company

Southern Company is a holding company that generates and sells electricity through its subsidiaries. It operates across three primary segments: Traditional Electric Operating Companies, which are vertically integrated utilities owning generation, transmission, and distribution facilities serving retail and wholesale electric customers in Alabama, Georgia, Florida, and Mississippi; Southern Power, which develops, owns, and operates power generation assets including natural gas, renewables, and battery energy storage projects sold primarily under long-term contracts across the US; and Southern Company Gas, which provides energy-related products and services in natural gas choice markets and distributes natural gas in four states. The company supplies electricity to approximately 9 million customers, with a focus on regulated rate base expansion, grid modernization, and meeting growing demand from commercial loads such as data centers and industrial developments through large-load contracts. Founded in 1945 and headquartered in Atlanta, Georgia, Southern Company plays a vital role in the US utilities sector by ensuring reliable power delivery and supporting regional economic growth.

Dividend Overview

Dividend Yield

3.06%

Annual Dividend

$2.96

Frequency

Quarterly

Payout Ratio

75.70%

FCF Payout Ratio

88.14%

Stock Price

$91.80

52-Week Range

$83.09 – $100.84

Dividend History (2016–2025)

SO annual dividend per share and yield history

Earnings & Profitability

SO earnings per share and net profit margin

Key Dates

Next Ex-Dividend Date

May 18, 2026

Next Payment Date

June 8, 2026

Dividend Growth

3-Year Dividend CAGR

2.88%

5-Year Dividend CAGR

2.97%

10-Year Dividend CAGR

3.17%

3-Year Total Growth

8.89%

5-Year Total Growth

15.75%

10-Year Total Growth

36.59%

Income Calculator

SO Dividend Calculator

Number of Shares

Total Investment

$9,180.00

Annual Income

$296.00

Quarterly Income

$74.00

Monthly Income

$24.67

Similar Dividend Stocks

Stock	Yield	5Y CAGR	Price	Sector
SO	3.06%	2.97%	$91.80	Utilities
AEPAmerican Electric Power Company, Inc.	2.90%	-5.41%	$130.16	Utilities
CEGConstellation Energy Corporation	0.54%	N/A	$303.63	Utilities
DDominion Energy, Inc.	4.32%	-4.99%	$61.89	Utilities
DUKDuke Energy Corporation	3.41%	2.01%	$124.17	Utilities
ETREntergy Corporation	2.26%	5.47%	$111.59	Utilities
EXCExelon Corporation	3.74%	-0.92%	$43.91	Utilities
NEENextEra Energy, Inc.	2.50%	10.12%	$93.10	Utilities
XELXcel Energy Inc.	2.90%	10.45%	$79.39	Utilities

Frequently Asked Questions

What is SO's current dividend yield?

Southern Company (SO) currently has a dividend yield of 3.06%, based on a stock price of $91.80 and an annual dividend of $2.96.

When is SO's next dividend payment date?

SO's next ex-dividend date is 2026-05-18 and the next payment date is 2026-06-08. You must own the stock before the ex-dividend date to receive the upcoming payment.

How much does SO pay in dividends per year?

Southern Company paid $2.94 per share in annual dividends in 2025. The dividends are paid quarterly.

Has SO been increasing its dividend?

Southern Company has grown its dividend at a 5-year CAGR of 2.97% and a 10-year CAGR of 3.17%.

Is SO's dividend safe?

Southern Company has a payout ratio of 75.70%. Its free cash flow payout ratio is 88.14%. The payout ratio is moderate. Monitor earnings to ensure sustainability.

How is SO's Dividend Safety Rating calculated?

The Dividend Safety Rating evaluates Southern Company's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for utilities companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.