June 23, 2025 a 03:31 am
ED: Dividend Analysis - Consolidated Edison, Inc.
Consolidated Edison, Inc., a stalwart in the Utilities sector, boasts a rich history of stability and consistent dividend payouts. Its enduring track record, represented by 56 consecutive years of dividend growth, highlights a resilient financial structure. Though the dividend yield is moderate, the company's satisfactory payout ratios signal a stable income stream for dividend-focused investors. As the utility landscape evolves, Consolidated Edison remains a dependable option for those prioritizing regular, reliable income.
📊 Overview
Consolidated Edison, Inc. operates in the Utilities sector, offering a dividend yield of 3.38%. The current dividend per share stands at $3.18, backed by a noteworthy 56-year dividend history. There have been no recent cuts or suspensions, demonstrating strong fiscal discipline.
| Metric | Value |
|---|---|
| Sector | Utilities |
| Dividend Yield | 3.38% |
| Current Dividend Per Share | 3.18 USD |
| Dividend History | 56 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The extensive dividend history of Consolidated Edison signifies robust financial health and a commitment to shareholder returns. A company with such a consistent history is often perceived as a safe investment, particularly during economic downturns. This track record adds significant confidence for dividend-focused investors.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.70 |
| 2024 | 3.32 |
| 2023 | 3.24 |
| 2022 | 3.16 |
| 2021 | 3.10 |
📈 Dividend Growth
Analyzing dividend growth provides insights into future income potential and the company's fiscal agility. A steady upward trend reassures investors about management's commitment to enhancing shareholder value.
| Time | Growth |
|---|---|
| 3 years | 2.31% |
| 5 years | 2.32% |
The average dividend growth is 2.32% over 5 years. This shows moderate but steady dividend growth, indicative of a balanced approach to expanding shareholder returns while maintaining cash flow flexibility.
💡 Payout Ratio
Payout ratios are crucial for comprehending dividend sustainability. They highlight how well earnings and cash flows cover dividend payments, signaling a company's ability to maintain or grow its dividends.
| Key Figure | Ratio |
|---|---|
| EPS-based | 58.86% |
| Free Cash Flow-based | 332.98% |
The EPS-based payout ratio of 58.86% is within a conservative range, ensuring dividend coverage without stretching resources. However, the FCF-based ratio at 332.98% may signal a reliance on external financing for dividend support, which could pose risks under economic strain.
📉 Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency allows for a deeper understanding of a company's operational effectiveness and ability to support dividend payouts.
| Financial Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -3.75% | -7.39% | -0.69% |
| Earnings Yield | 5.90% | 7.96% | 4.91% |
| CAPEX to Operating Cash Flow | 0% | 208.44% | 105.92% |
| Stock-based Compensation to Revenue | 0% | 0% | 0.41% |
| Free Cash Flow / Operating Cash Flow Ratio | 32.01% | -108.44% | -5.92% |
The negative free cash flow yields across recent years might raise concerns over short-term liquidity, yet the positive earnings yield offers some reassurance of ongoing profitability. Understanding capital efficiency becomes vital to predict sustainable financial health.
📊 Balance Sheet & Leverage Analysis
Balance sheet analysis reveals insights into a company's financial health, liquidity situation, and capital structure while assessing risk levels associated with leverage.
| Financial Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.27 | 1.18 | 1.18 |
| Debt-to-Assets | 0.39 | 0.38 | 0.35 |
| Debt-to-Capital | 0.56 | 0.54 | 0.54 |
| Net Debt to EBITDA | 4.57 | 3.93 | 4.60 |
| Current Ratio | 1.03 | 1.01 | 1.14 |
| Quick Ratio | 0.96 | 0.94 | 1.10 |
| Financial Leverage | 3.21 | 3.14 | 3.34 |
Consolidated Edison maintains a relatively stable debt profile but should strive to better align its leverage ratios with industry norms. A proficient management of leverage could enhance long-term financial flexibility.
✅ Fundamental Strength & Profitability
Profitability ratios inform stakeholders about the strength of management in turning resources into profits, reflecting the firm's inherent business quality.
| Financial Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.29% | 11.91% | 8.02% |
| Return on Assets | 2.58% | 3.80% | 2.40% |
| Margins: Net | 11.93% | 17.18% | 10.59% |
| Margins: EBIT | 21.79% | 27.46% | 19.46% |
| Margins: EBITDA | 35.92% | 41.34% | 32.13% |
| Margins: Gross | 53.53% | 50.50% | 49.04% |
| Research & Development to Revenue | 0% | 0% | 0.17% |
Despite modestly fluctuating margins, returns on equity and assets remain satisfactory, hinting at efficiency in utilizing equity and assets to generate adequate returns.
📈 Price Development
🔍 Dividend Scoring System
| Category | Score | Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 4 |
Overall Score: 27/40
🏆 Rating
Consolidated Edison, Inc. receives a composite rating of 'Performance: Solid'. Its robust dividend history complemented by strong dividend stability outweigh the potential risks associated with financial leverage and free cash flow issues. This stock is recommended for investors prioritizing income consistency over high growth potential.