November 08, 2025 a 11:31 am
ED: Dividend Analysis - Consolidated Edison, Inc.
Consolidated Edison, Inc., a stalwart in the utilities sector, offers a stable dividend investment profile with a remarkable dividend history. With over five decades of consecutive dividend payments, the company's commitment to returning capital to shareholders is evident. The dividend yield is modest, yet consistent, making it a reliable option for income-focused investors.
📊 Overview
Consolidated Edison, Inc. is positioned within the utilities sector, defined by its consistent and reliable dividend payments. The current dividend yield stands at 3.45%, with a dividend per share of USD 3.18, supported by a 56-year history of uninterrupted payments. This longevity underlines a robust commitment to shareholders, with the last dividend cut occurring over four decades ago in 1981.
| Sector | Dividend Yield % | Current Dividend per Share (USD) | Dividend History (years) | Last Cut/Suspension |
|---|---|---|---|---|
| Utilities | 3.45% | $3.18 | 56 | 1981 |
🗣️ Dividend History
With a robust 56-year history of dividend payments, Consolidated Edison serves as an exemplar of consistency. The predictability of these payments is crucial for investors who rely on dividends as a source of income.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | $3.40 |
| 2024 | $3.32 |
| 2023 | $3.24 |
| 2022 | $3.16 |
| 2021 | $3.10 |
📈 Dividend Growth
Dividend growth is a key metric for evaluating future income potential. Consolidated Edison has shown average growth in its dividends, with a 3-year growth rate of 2.31% and a 5-year growth rate of 2.32%.
| 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, suggesting reliability even if the growth is not aggressive.
✅ Payout Ratio
Analyzing payout ratios provides insight into the sustainability of dividend distributions. With an EPS-based payout ratio of 56.35% and a free cash flow-based payout ratio of 33.80%, Consolidated Edison demonstrates a balanced distribution approach, aligning closely with earnings and cash flows.
| Key Figure | Ratio % |
|---|---|
| EPS-based | 56.35% |
| Free cash flow-based | 33.80% |
The EPS payout ratio sits at a conservative level, affirming the company's capacity to maintain its dividend policy without overextending its financial resources.
🛠️ Cashflow & Capital Efficiency
Free cash flow and capital efficiency metrics are crucial indicators of financial health and potential growth. Notably, Consolidated Edison’s cash flow metrics reveal challenges with a negative Free Cash Flow to Operating Cash Flow Ratio in recent years, highlighting potential areas for optimization and capital allocation efficiency.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX/Op Cash Flow | Stock Comp./Revenue | FCF/Op Cash Flow Ratio |
|---|---|---|---|---|---|
| 2024 | -3.75% | 5.90% | 132.01% | 0.00% | -32.01% |
| 2023 | -7.39% | 7.96% | 208.44% | 0.00% | -108.44% |
The positive earnings yield yet negative free cash flow trend points to the importance of addressing operational efficiencies to convert profits into cash flow effectively.
⚖️ Balance Sheet & Leverage Analysis
Understanding a company's leverage is fundamental to assessing financial stability. Consolidated Edison boasts a reasonable debt-to-equity ratio, yet areas such as net debt to EBITDA require monitoring to ensure sustainable debt levels.
| Year | Debt-to-Equity | Debt-to-Assets | Debt-to-Capital | Net Debt to EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2024 | 126.69% | 39.43% | 55.88% | 4.84 | 0.00 | 96.05% | 321.29% |
| 2023 | 118.21% | 37.70% | 54.17% | 3.93 | 0.00 | 93.90% | 313.50% |
While the current ratios indicate potential liquidity concerns, the overall leverage and debt structuring should be carefully observed to sustain long-term operational health.
💪 Fundamental Strength & Profitability
Evaluating fundamental strength reveals insights into profitability and operational effectiveness. Consolidated Edison showcases strong Net and EBIT margins, with solid returns on equity and assets, which are testament to its operational prowess.
| Year | Return on Equity | Return on Assets | ROIC | Net Margin | EBIT Margin | Gross Margin |
|---|---|---|---|---|---|---|
| 2024 | 8.29% | 2.58% | 3.48% | 11.93% | 21.79% | 63.99% |
| 2023 | 11.91% | 3.80% | 3.09% | 17.20% | 27.52% | 61.17% |
The consistent operating margins underscore Consolidated Edison's strategic focus on sustaining operational efficiency and enhancing shareholder value through disciplined financial practices.
📉 Price Development
🌟 Dividend Scoring System
| Criteria | Score | Bar |
|---|---|---|
| Dividend Yield | 3/5 | |
| Dividend Stability | 5/5 | |
| Dividend Growth | 2/5 | |
| Payout Ratio | 4/5 | |
| Financial Stability | 3/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 2/5 | |
| Balance Sheet Quality | 3/5 |
Total Score: 27/40
🔍 Rating
Overall, Consolidated Edison, Inc. presents a solid dividend profile that appeals to income-seeking investors. While growth prospects remain modest, the stability and reliability of its dividend, backed by historical performance, offer a compelling case for consideration in conservative investment portfolios. Investors should weigh the consistent returns against its relative growth limitations.