Honestly, if you've been watching FirstEnergy Corp (FE) lately, you know it's a bit of a rollercoaster. One day it feels like a boring, safe utility play, and the next, you're reading about million-dollar settlements and grid modernization plans that sound like they belong in a sci-fi novel.
Right now, as we sit in early 2026, the first energy stock prices are hovering around the $44.99 mark.
It’s a weird spot to be in. On one hand, the stock is up about 15% over the last year. On the other, it’s still trying to shake off the ghost of that massive HB 6 bribery scandal that basically defined the company’s reputation for years. You’ve probably seen the headlines: "PUCO Approves $275 Million Settlement." That’s real money going back to customers in Ohio.
But for an investor? It's about whether the "bad stuff" is finally priced in.
Why FE Is Acting So Strange Right Now
Most people think utility stocks are just bond proxies. You buy them, you collect the dividend, and you forget they exist. But FirstEnergy hasn't played by those rules.
The stock has a 52-week range between $37.58 and $48.20. That’s a lot of movement for a company that just moves electricity around.
The big news hitting the tape this month is the Public Utilities Commission of Ohio (PUCO) settlement. It’s a $275 million hit. Most of that—about $250 million—is going straight back to residential bills as credits. If you're a customer of Toledo Edison or Ohio Edison, you're literally seeing the stock's "penance" show up on your monthly statement.
Wait, why would the stock go up when they have to pay out $275 million?
Because Wall Street hates uncertainty more than it hates losing money. By settling these four regulatory proceedings, FirstEnergy is basically clearing the deck. They are trying to move from being "the scandal company" to "the infrastructure company."
The $28 Billion Bet
The company isn't just paying fines; they are spending like crazy. Their Energize365 program is a $28 billion investment plan through 2029. That is a staggering amount of capital.
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- Grid Modernization: They are putting $6 billion into the ground in 2026 alone.
- Reliability: This isn't just fixing old poles. It's high-voltage transmission upgrades.
- Data Centers: This is the secret sauce. With the AI boom, the demand for power in places like Northern Ohio and Maryland is skyrocketing. FirstEnergy happens to own the wires in those spots.
First Energy Stock Prices and the Dividend Trap
Let’s talk about the dividend. Everyone loves a 4% yield, right?
Currently, FirstEnergy is paying out 44.5 cents per share quarterly. The next one is due March 1, 2026. If you buy in at $45, you’re looking at a yield around 3.96%.
But you have to look at the payout ratio. They are aiming for 60% to 70% of their earnings. In 2025, they bumped the dividend, and they’ve guided for a total of $1.86 per share in dividends for 2026.
Is it a "Strong Buy"?
If you ask the analysts at Morgan Stanley or Citigroup, they’re pretty bullish. Some targets are as high as $54.00.
But there’s a catch.
FirstEnergy carries a lot of debt. We’re talking a debt-to-equity ratio of about 2.15. In a world where interest rates are still "sticky," that debt is expensive to service. Jefferies recently pointed out that their balance sheet is a bit less robust than some of their peers like Duke Energy or Southern Company.
What Really Happened With the Corruption Scandal
You can't talk about first energy stock prices without mentioning House Bill 6. It was one of the largest bribery scandals in Ohio's history.
For a long time, this was a massive weight on the stock. Investors were terrified of "the next shoe to drop." But the January 2026 settlement with PUCO is basically the closing chapter of the investigation.
CEO Brian Tierney has been on a "trust tour," and it seems to be working. Forbes actually just named them one of America’s Most Trusted Companies for 2026. That’s a wild turnaround from where they were three years ago.
The Numbers You Actually Need to Know
If you're staring at your brokerage account, here's the raw data:
- P/E Ratio: Around 19.6. That’s actually a bit of a discount compared to the broader utility sector.
- Earnings Growth: They are projecting 6% to 8% growth through 2029.
- 2026 Guidance: The company is looking at earnings between $2.62 and $2.82 per share.
The midpoint there is $2.72. If they hit that, the stock looks fundamentally "cheap" at $45.
Actionable Insights for Investors
So, what do you actually do with this?
First, stop thinking of FE as a high-growth tech stock. It’s not. It’s a recovery story wrapped in a utility shell.
Watch the PJM Awards. In the first quarter of 2026, there are some major transmission project awards coming down the pipe. If FirstEnergy wins a big chunk of those, the stock could easily test that $48 resistance level again.
Mind the Debt. If we see another spike in treasury yields, utility stocks across the board will take a hit. FE, because of its debt load, might take a harder hit than others.
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Don't ignore the Ohio Rate Plan. The company has a three-year plan for Ohio that PUCO is still fine-tuning. This will dictate how much they can charge customers—and how much profit they can keep—for the next several years.
The Bottom Line: If you're looking for a steady dividend with some "catch-up" growth potential as the scandal fully fades, FirstEnergy is worth a look. Just don't expect it to double overnight. It's a slow burn.
Your Next Steps
- Check the Ex-Dividend Date: If you want that March payout, you need to be a shareholder of record by February 6, 2026.
- Verify the 10-K: Keep an eye out for the full 2025 annual report usually released in February to see if there are any new legal "contingencies" hidden in the footnotes.
- Compare Yields: Look at the 10-year Treasury. If the Treasury yield is higher than FE's 3.96%, the "risk-free" rate might be a better place for your cash unless you're betting on the stock price hitting that $50+ analyst target.
Expert Note: Stock market investments involve risk. While FirstEnergy's regulatory environment is stabilizing, future political shifts in Ohio or Maryland can still impact utility rates and, by extension, FirstEnergy stock prices. Always diversify.