uploads/2018/10/coins-1523383_1280.jpg

Comparing Consolidated Edison’s Dividend Yield with Its Peers

By

Updated

Consolidated Edison has raised dividends for 44 consecutive years

Consolidated Edison (ED) declared a dividend of $0.715 per share on October 18. It will pay it on December 17 to shareholders of record as of November 14. It’s expected to pay an annualized dividend of $2.86 for 2018, implying a dividend growth of 3.6% compared to last year.

Among the S&P 500 utilities, Consolidated Edison has one of the longest dividend-increasing streaks. It has increased its per-share dividend for the last 44 years. In comparison, Southern Company (SO), the second-largest regulated utility in the country, has increased its dividend for the last 17 years.

ED yld

Article continues below advertisement

Dividend yield

Consolidated Edison is currently trading at a dividend yield of 3.8%, which is higher than the average of the broader utilities. The Utilities Select Sector SPDR ETF (XLU), which is representative of the S&P 500 utilities, has a yield of ~3.5%. Consolidated Edison’s yield seems stable and is currently trading below its five-year average.

Its peer Xcel Energy (XEL) has a dividend yield of 3.2%, while Southern Company (SO) is yielding 5.5%.

In the last five years, Consolidated Edison’s dividends have grown at ~3% compounded annually. Although that growth is low compared to others in the sector, its consistent dividend increase over a long period makes it a noteworthy name among utilities.

Xcel Energy and Southern Company have increased their dividends 6% and 3.4%, respectively, compounded annually in the last five years. Xcel Energy has increased its per-share dividends for the last 15 years.

Advertisement

More From Market Realist