National Grid Stock And 2 Utility Shares For Steady Dividend Income

With investors glued to upcoming US inflation data, oil price swings and firm Treasury yields, high dividend yield stocks are drawing fresh attention from anyone looking for steadier income while markets debate the Federal Reserve’s next move in September. This article looks at how those macro forces link back to company fundamentals and payout strength. You will see three stocks from the screener that appear positively exposed to the current backdrop.

The three stocks highlighted below are just a starting sample, since the full high dividend yield screen also surfaced 26 more companies with equally interesting income stories that are not covered here. To see the wider opportunity set in one place, head straight to the High Dividend Yield Stocks screener to identify, compare and analyze the highest conviction ideas for your watchlist.

Atmos Energy (ATO)

Atmos Energy is a regulated natural gas utility that distributes gas to about 3.4 million customers across eight US states and also runs pipeline and storage operations in Texas. Most of its roughly US$4.6b in revenue comes from the Distribution segment, while Pipeline and Storage adds about US$1.2b and internal eliminations reduce the reported total. The company is a large-cap stock with a market value of around US$28.4b.

Income focused investors may find Atmos Energy interesting because it combines a long dividend track record with a regulated business model that tends to appeal when inflation, oil prices and Treasury yields keep markets on edge. The company is spending heavily to modernize its network and support growing gas demand, which supports earnings potential but also increases reliance on external funding and raises questions about dividend coverage. A long regulatory and legal to do list, including safety lawsuits and ongoing rate decisions, adds another layer of risk that sits alongside supportive legislation in key states like Texas. For anyone weighing dependable income against balance sheet and policy uncertainty, there is more to unpack in Atmos than its headline yield suggests.

Atmos Energy’s heavy network spending could be either quietly building long term income strength or stretching its balance sheet further than income investors expect. For more details, see the Atmos Energy financial health report.

Build your own dividend and balance sheet shortlist

Atmos Energy and the two other stocks in this list all surfaced from a single Simply Wall St screener, which is a reminder that the real edge comes when you shape the filters yourself. Use our flexible Screener to blend dividend strength, valuation checks, risks and financial health for your own watchlist, or jump straight into any of our curated Investing Ideas for ready made starting points.

Consolidated Edison (ED)

Consolidated Edison is a regulated utility that delivers electricity, gas and steam to homes, businesses and government customers across New York City, Westchester County and nearby regions. Most of its roughly US$17.7b in revenue comes from Consolidated Edison Company of New York, including about US$12.1b from electric service, US$3.4b from gas and US$872m from steam. Orange and Rockland adds around US$1b from electric and US$349m from gas. The stock is a large cap utility with a market value of about US$39.9b.

Investors watching inflation data, oil volatility and firm Treasury yields may see Consolidated Edison as a way to anchor a portfolio with regulated, income focused exposure. Earnings growth has recently been solid, with Q2 2026 results and six month figures ahead of expectations, while the company continues to invest heavily in the New York grid and gas network to support reliability and the clean energy transition. At the same time, a 3.34% dividend yield that is not well covered by free cash flow, reliance on external funding for liabilities and political pressure around bills in New York mean the story is not just about steady income. The combination of supportive earnings trends and balance sheet tension makes Consolidated Edison a utility that some investors may find worth a closer look.

Consolidated Edison’s solid recent earnings and significant grid investment could be masking a much sharper story for income seekers. See the full picture in the 4 key rewards and 2 important warning signs (1 is major!)

National Grid (LSE:NG.)

National Grid runs electricity and gas networks across the UK and US, owning critical transmission and distribution assets that keep power flowing to homes, data centers and heavy industry. Most of its revenue comes from the US, with about £7.6b from New York and £4.2b from New England, while UK Electricity Transmission and Distribution add roughly £2.9b and £1.9b respectively, and National Grid Ventures contributes around £1.1b. The stock is a large cap utility with a market value of about £58.5b.

Income focused investors watching inflation, oil volatility and firm Treasury yields may see National Grid as a way to pair high dividend yield exposure with regulated infrastructure that benefits from multi decade grid upgrades. Management is planning at least £60 to £70b of investment over five years and is targeting double digit earnings growth, while also signing up to customer protection pledges and electric vehicle pilots that aim to keep bills and reliability in balance. The trade off is that dividends are not well covered by free cash flow and the business leans heavily on debt funded capital expenditure, so returns depend on regulators staying supportive and projects staying on budget. For anyone weighing steady income against funding and policy risk, the current mix of growth plans, inflation linked dividends and discount to estimated fair value makes National Grid a company worth a closer look in the high yield universe.

National Grid’s massive £60 to £70b investment plan and inflation linked income story could be masking a much sharper growth profile. Get the context and the potential trade offs in the analysis report for National Grid

Seeking Alternatives Before Momentum Flies Past

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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