Consolidated Edison (ED): A Top Dividend Aristocrat with Over 3% Yield

In the ever-changing landscape of the stock market, finding reliable dividend stocks can be a game-changer for income-focused investors. One company that stands out as a beacon of stability and growth is consolidated edison, Inc. (ED). With a dividend yield of over 3% and a history of consistent dividend increases, ED is a top contender for any investor looking to build a robust dividend portfolio.

Why Consolidated Edison Stands Out

Consolidated Edison, Inc. (ED) is a utility company that has been providing essential services to millions of customers in New York City and surrounding areas since 1884. The company's core business involves the regulated delivery of electric, gas, and steam services, making it a cornerstone of the local infrastructure. This stability is reflected in its financial performance and dividend history.

Financial Performance and Dividend History

In 2024, Consolidated Edison reported a revenue of $15.26 billion, marking a 4.04% increase from the previous year. While earnings saw a decrease of 27.75% to $1.82 billion, the company's consistent revenue growth and strong cash flows indicate a solid financial foundation. This is further supported by the company's dividend yield of 3.54%, which is highly competitive within the utilities sector.



One of the most compelling aspects of Consolidated Edison is its dividend history. The company has increased its dividends for 50 consecutive years, making it a Dividend King. This streak of consistent dividend growth is a testament to the company's financial stability and commitment to shareholders. The annual dividend is $3.32 per share, with growth rates of 2.52% over the past year, 1.97% over the past three years, 2.51% over the past five years, and 2.79% over the past ten years.

Key Financial Metrics

1. Dividend Yield: 3.54%
2. Payout Ratio: 60.13%
3. Dividend Growth: 2.52% (1-year), 1.97% (3-year), 2.51% (5-year), 2.79% (10-year)
4. Earnings: $1.82 billion (2024)
5. Revenue: $15.26 billion (2024)

Risk-Adjusted Performance

Consolidated Edison's risk-adjusted performance metrics further solidify its position as a reliable dividend stock. The Sharpe ratio of 1.46 indicates a strong risk-adjusted return, while the Sortino ratio of 2.11 highlights the company's ability to manage downside risk effectively. The Omega ratio of 1.26 and the Calmar ratio of 1.97 provide additional insights into the company's performance relative to its maximum drawdown, making it a stable choice for long-term investors.

Dividend Safety

Dividend safety is a critical consideration for income-focused investors. Consolidated Edison's dividend payout ratio of 60.13% indicates that the company retains enough earnings to reinvest in growth opportunities while still providing a substantial return to shareholders. This balance is crucial for maintaining dividend safety and ensuring long-term sustainability.

Sector Comparison

When compared to other Dividend Aristocrats in the utilities sector, Consolidated Edison's dividend yield of 3.54% is highly competitive. For instance, the article "2025 Dividend Kings: Strong Run Continues" highlights that the Dividend Kings, which include Consolidated Edison, are outperforming the S&P 500 in 2025 by 4.57%. Specifically, Consolidated Edison has shown a strong performance with a 22.66% increase, which is a significant indicator of its financial health and stability.

Conclusion

In conclusion, Consolidated Edison, Inc. (ED) is a top dividend stock with a yield of over 3% and a history of consistent dividend increases. Its strong financial performance, competitive dividend yield, and robust risk-adjusted metrics make it an attractive option for income-focused investors. With a payout ratio of 60.13% and a long history of dividend payments, Consolidated Edison is well-positioned to continue providing reliable income to its shareholders. For investors looking to build a stable dividend portfolio, ED is a stock worth considering.

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