shareholder value

Throughout Southern Company’s history, an unwavering commitment to customers has been a cornerstone of our business. We believe keeping customers at the center of all we do ultimately translates to value creation for investors, and this has been borne out in the results we’ve delivered year after year.

Over the long term, Southern Company has proved to be a solid investment, outperforming the S&P 500 over the 10-, 20- and 30-year periods ended December 31, 2016. Our dividend—an important part of that performance—increased for the 15th consecutive year in 2016, and we have paid shareholder dividends every quarter since 1948.

At year-end, Southern Company’s dividend yield was 4.5 percent, compared with approximately 2.0 percent for the S&P 500. Over the past 20 years, dividends and dividend reinvestment have

accounted for approximately 69 percent of the increase in our shareholder value, compared with approximately 40 percent of the increase in shareholder value for the S&P 500.

Of course, dividends do more than simply provide cash to shareholders; they help shape a company’s approach to risk. Once again, the proof is in the numbers. In 2016, Southern Company was the second-least volatile stock in the Philadelphia Electric Utility Index. Stocks with low volatility are often less prone to price swings during times of market stress, and are therefore considered more stable.

Keeping customers first—along with stellar reliability and prices below the national average—has enabled us to sustain operational success, reinforcing our reputation for delivering exceptional long-term shareholder value.