Southern Company (The) Series 2 (SOJE) Stock Analysis
SOJE offers a 6.41% yield and substantial discount-to-par upside, backed by Southern Company’s regulated moat and data-center growth but constrained by leverage and long-duration rate risk.
Overview
Southern Company is a regulated Southeastern utility holding company serving approximately nine million retail and wholesale customers through traditional electric utilities, Southern Power, and Southern Company Gas. The analysis focuses on SOJE, its Series 2 exchange-traded junior subordinated note, which has a $25.00 par value, a fixed 4.20% coupon, and an October 15, 2060 maturity. **SOJE trades near $16.40, a 34.4% discount to par, and offers a 6.41% current yield with a 6.80% implied YTM.** The underlying utility benefits from geographic monopolies, 94% regulated EBITDA, completed Vogtle Units 3 and 4, and major Southeastern data-center demand. Q2 2026 adjusted EPS of $1.13 beat the $0.99 consensus by 14.1%, while net income rose to $1.17 billion; however, $6.98 billion of revenue was essentially flat year over year and missed consensus because of mild weather. Management expects 2026 EPS near the top of its $4.50–$4.60 range and 8%–9% EPS growth through 2028. **The principal catalyst is falling long-term yields, while leverage, subordination, and $81 billion of capital spending remain key constraints.**