US Utility Stocks Gain Traction Amid Trade Tensions

The recent US-Canada trade tensions have put utility stocks in the spotlight. Cross-border supply chains are under stress, and investors are looking for companies that can weather this storm.

One such company is Atmos Energy (ATO), a Dallas-based regulated natural gas utility that distributes gas to 3.4 million customers across eight US states. Its domestic focus on US supply, transmission, and system resilience sets it apart from other utilities reliant on cross-border fuel supplies.

Atmos Energy generates $4.6 billion in revenue from its Distribution segment and $1.2 billion from Pipeline and Storage. With a market cap of $28.2 billion, the company offers exposure to US natural gas distribution and pipelines at a time when trade frictions are pushing investors toward domestically anchored utilities.

MGE Energy (MGEE) is another utility stock that fits this theme. As a Madison-based public utility holding company, it generates and distributes electricity and natural gas for around 170,000 US electric customers. With regulated earnings, profit margins near 20%, and a record of over five decades of dividend growth, MGE Energy provides a stable income story.

New Jersey Resources (NJR) is also worth considering. As a US energy services holding company, it primarily distributes natural gas through its regulated New Jersey Natural Gas utility. With a mix of regulated style gas distribution and solar investments, New Jersey Resources offers exposure to domestic supply and grid resilience at a time when tariffs and cross-border energy risks are top of mind.