Southern company (SO) pays an annualized dividend of $1.96 per share, which means a dividend yield of 4.3%, below its competitors. Duke Energy (DUK) and Exelon Corp (EXC) are better than Southern because of cheaper valuations and a higher dividend yield. Southern has been issuing common equity to generate cash, which is leading to EPS dilution.

Southern Company is one of the largest electricity generators and distributers in the U.S. It is primarily engaged in the generation, transmission and distribution of electricity. It operates through different entities, which include Georgia Power, Alabama Power, Mississippi Power and Gulf Power. It also owns the Southern Power Company. Georgia Power's revenue contribution to total revenue was highest in 2Q2012 (47%). Southern Power has the highest profit margin (16.4%).

Southern Company reported revenues of $4.18 billion for 2Q2012, down 7.5% YoY. It reported EPS of 69 cents for the recent quarter, down 2.8% YoY, whereas its competitor Duke Energy's EPS increased by 3% for the same period. Second quarter earnings were slightly above the earnings estimate of 68 cents. Earnings for the quarter were down due to near normal weather in 2Q2012, as compared to unusual warm weather in the corresponding period last year. The earnings for Q32012 are expected to be up 4.5% YoY and annual EPS for fiscal year 2012 are expected to be up by 0.5%-5% YoY.

Total retail sales were down 1.9% YoY. In retail, commercial sales has the highest contribution with a ~35% share, followed by Industrial with ~33% and residential with 31.5%. In the first six months of 2012, operating companies added 20,000 new residential customers.

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