Our customer-focused business model has been a cornerstone of Southern Company's culture since our earliest days. We believe our ability to provide real solutions for customers translates to value creation for investors, as demonstrated by the results we have delivered over time.

Over the long term, Southern Company has been a solid investment, outperforming the S&P 500 over the 10-, 20- and 30-year periods ending December 31, 2015. Our dividend–an important part of that performance–increased for the 14th consecutive year in 2015, and we have paid shareholder dividends every quarter since 1948.

At year-end, Southern Company's dividend yield was 4.6 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 71 percent of the increase in our shareholder value, compared with approximately 39 percent of the increase in shareholder value for the S&P 500.

Another advantage for shareholders is low volatility relative to the market. In 2015, Southern Company was the 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.

Our steadfast commitment to customer value has been a driving force behind a steady increase in shareholder value–and we see no reason to alter that course.

Value of $1,000 Invested Over 20 Years

SOUTHERN COMPANY

S&P 500 INDEX

PHILADELPHIA ELECTRIC UTILITY INDEX

This performance graph compares the cumulative return on Southern Company (SO) common stock with the Philadelphia Electric Utility Index (UTY) and the Standard & Poor's (S&P) 500 Index for the past 20 years. The average annualized return during the 20-year period is 11.2 percent for Southern Company, compared to 8.0 percent for the UTY and 8.2 percent for the S&P 500. The graph assumes $1,000 was invested in Southern Company common stock and each of the above indices on December 31, 1995, and that all dividends were reinvested. A five-year performance graph is included in the Annual Report to Stockholders.

Source: FactSet and Bloomberg
See Glossary for information on total shareholder return.

Value Added by Low Volatility Relative to the Market

This chart shows the volatility of each of the 20 utilities in the Philadelphia Electric Utility Index (UTY). Volatility refers to the tendency of a stock to react to swings in the market. Southern Company had the lowest level of volatility in the UTY Index.

Source: FactSet and Bloomberg, five-year beta as of December 31, 2015
See Glossary for information on beta.

Value Created by Dividend and Price Performance

SOUTHERN COMPANY DIVIDEND VALUE

SOUTHERN COMPANY STOCK VALUE

This chart shows the power of Southern Company's dividend. Over the last 20 years, a $1,000 investment in SO grew to $8,328. Price increases contributed $3,132 and dividends, with reinvestment, accounted for an increase of $5,196, or approximately 71 percent of the gain in value. The graph assumes that $1,000 was invested in Southern Company common stock on December 31, 1995, and that all dividends were reinvested.

See Glossary for information on total shareholder return.