OGS

ONE Gas (OGS), a natural gas distribution utility, offers an attractive dividend yield of 3.65% with consistent dividend growth averaging 4.53% annually over the past 5 years. The company maintains a healthy 56% payout ratio and is expected to see earnings growth of 9.60% in 2026, making it a solid income investment opportunity despite its current Zacks Rank #3 (Hold) rating.

American Water Works (AWK) added approximately 52,700 customers through acquisitions and 9,000 organically in the first half of 2026, with 19 pending acquisitions representing 56,600 potential customers. The company plans to invest $19-$20 billion through 2030 to support 8-9% rate-base growth. However, AWK is trading at a premium valuation (P/E 20.03X vs. industry 16.02X) and carries a Zacks Rank #4 (Sell) rating, with shares declining 6.9% in the past three months.