SO Research
The Southern Company
Next ex-dividend date: 2026-08-17 (69 days away)
3.28%
Forward yield
$3.040 / yr per share
Yield percentile (5y)
P 37
3.1% (P10)3.5% (med)4.0% (P90)
Quality score
89/100
Strong · High payout risk
Annual / share
$3.040
Quarterly · next ex-date 08-17 (69d)
vs 5y P90 reference
+20%
$92.63 vs $74.56 (5y P90 price)
Refreshed 2026-06-09Data coverage High — 45y history
01Fundamentals
SO demonstrates strong dividend continuity with 45 consecutive years of payments, but its financial health poses significant risks for income investors. The high 90.0% effective payout ratio and negative free cash flow of -$2.935B raise concerns about dividend sustainability despite a 3.1965% dividend yield.
Bull caseThe company offers exceptional dividend reliability in a defensive sector, evidenced by 45 consecutive years of payments and an outstanding 19.0/20 moat score.
Bear caseSignificant financial strain is apparent with -$2.935B in free cash flow, a high 2.1× Debt/Equity ratio, and a 90.0% effective payout ratio, contributing to a critically low 0.0/20 balance_sheet_strength score.
02Risk & quality
| Payout ratio | High · 90.0% |
| Overall quality score | 89 / 100 · Strong |
Score breakdown — five dimensions, each /2020 + 10 + 19 + 3 + 0 = 89
20.0/20
Consistency
10.0/20
Payout safety
19.0/20
Moat
2.8/20
Growth rate
↓
0.0/20
Balance sheet
- Consistency 20.0/20 — SO has raised or maintained its dividend for 45 consecutive years, qualifying as a Dividend Aristocrat (25+ year streak). The dimension caps at 10 years, so 45 years comfortably clears the ceiling for full credit.
- Payout safety 10.0/20 — SO's free cash flow payout ratio is 90.0%, in the strained range. Most of current profit is going to the dividend, leaving little buffer if earnings dip. Above 100% would mean the company is paying from cash or debt rather than current profit.
- Moat 19.0/20 — Scores how protected SO's earnings stream is from competition. Operating in this sector, SO benefits from the kind of brand pricing power, regulatory position, or scale that lets margins hold up through economic cycles. Cyclical or commodity-driven sectors typically score in the single digits here.
- Growth rate 2.8/20 — SO has raised the dividend about 4.2% per year over the past 5 years — modest but steady. This kind of mid-single-digit pace is typical for mature, large-cap dividend payers running at moderate payout ratios; growth-tilted dividend ETFs (think SCHD constituents) typically target the 15-20% range.
- Balance sheet 0.0/20 — A composite of ROE and inverse leverage. A low score here can mean weak return-on-equity, high debt, or both — for SO, ROE and a 2.1× debt-to-equity ratio. Doesn't directly threaten the current dividend if cash flow is healthy, but it does limit how much room the company has for future hikes or to absorb a downturn.
03Price reference
$10,000at current price →$328/ yr in dividends
Math: 3.28% forward yield. Historical 5y DGR is 4.2%/yr — past growth does not guarantee future results.
Below are statistical price references from the last 5 years of trading, anchored to historical drawdown events. They describe where the price has been — not where it should be.
$60.45
$74.56
$92.63
5y P10
5y P90
Now
| Current price | $92.63 |
| 5y P90 reference (high-yield 10% tail) | $74.56 — 19.5% lower |
| 5y P10 reference (low-yield 10% tail) | $60.45 — 34.7% lower |
| 5y max observed yield (at P10 price) | 4.3% |
| Annual dividend (frozen forward) | $3.040 / share · 3.28% yield |
Historical anchor · 2020-03 COVID Sell-off
Low $34.05 · drawdown 2806 days · yield reached 5.8%
COVID pandemic triggered global liquidity panic, market plunged 34% in 3 weeks
Important — this is reference data, not investment advice.
Quality scores, percentiles, and price references are statistical summaries of historical data computed by our research methodology from public market data, refreshed daily. They do not constitute a buy / sell / hold recommendation, do not account for your personal financial situation, tax bracket, or goals, and past performance does not predict future results. Consult a registered investment advisor before making investment decisions. divcalc.io is not a registered investment advisor.
Quality scores, percentiles, and price references are statistical summaries of historical data computed by our research methodology from public market data, refreshed daily. They do not constitute a buy / sell / hold recommendation, do not account for your personal financial situation, tax bracket, or goals, and past performance does not predict future results. Consult a registered investment advisor before making investment decisions. divcalc.io is not a registered investment advisor.