November 26, 2025 a 11:31 am
ED: Dividend Analysis - Consolidated Edison, Inc.
Consolidated Edison, Inc. is a stable utility company with a long history of dividend payments. With over 56 years of unbroken dividend history, it presents an attractive option for income-oriented investors. Despite its recent dividend growth being modest, the company's consistent performance in the utilities sector fosters confidence in its ability to maintain payouts.
📊 Overview
The overall dividend performance of Consolidated Edison, Inc. reflects stability and reliability, a hallmark of the utility sector. The company's impressive track record of 56 years without a dividend cut or suspension since 1981 underlines market confidence.
| Metric | Value |
|---|---|
| Sector | Utilities |
| Dividend Yield | 3.39% |
| Current Dividend per Share | 3.18 USD |
| Dividend History | 56 years |
| Last Cut or Suspension | 1981 |
📈 Dividend History
Understanding the historical payment of dividends is crucial for evaluating a company's commitment to its shareholders. It indicates management's consistent ability to return profits to investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.40 |
| 2024 | 3.32 |
| 2023 | 3.24 |
| 2022 | 3.16 |
| 2021 | 3.10 |
📉 Dividend Growth
Evaluating dividend growth allows investors to gauge if their income will keep pace with inflation over time. Though modest, Consolidated Edison's growth underpins its resilience.
| 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.
✅ Payout Ratio
Payout ratios measure the sustainability of dividends. Generally, a ratio under 60% is considered healthy in the utility sector.
| Key Figure | Ratio |
|---|---|
| EPS-based | 56.35% |
| Free Cash Flow-based | 33.83% |
With an EPS payout ratio of 56.35% and an FCF payout ratio of 33.83%, Consolidated Edison maintains a sustainable dividend policy, ensuring reliability in its payments.
Cashflow & Capital Efficiency
An analysis of cash flow and capital efficiency provides insights into the company’s operational efficacy and long-term viability. The stability in free cash flow yields will signal future dividend possibilities.
| Year | 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 | 132.01% | 208.44% | 105.92% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | -32.01% | -108.44% | -5.92% |
The negative free cash flow yield suggests challenges in funding operations exclusively through cash flow. However, stable earnings yield provides a buffer, presenting opportunities for improvement in capital efficiency.
Balance Sheet & Leverage Analysis
Leverage ratios are essential for assessing a company's financial vulnerability and capacity to meet its debt obligations. These measures help understand the financial leveraging and liquidity aspects.
| Year | 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 | 4.84 | 3.93 | 4.48 |
| Current Ratio | 0.00 | 0.00 | 0.00 |
| Quick Ratio | 0.96 | 0.94 | 1.10 |
| Financial Leverage | 3.21 | 3.14 | 3.34 |
The leverage figures, particularly the debt-to-equity and financial leverage ratios, depict a moderately leveraged balance sheet typical for utilities. This supports debt servicing capabilities and financial resilience under market scrutiny.
Fundamental Strength & Profitability
Fundamental metrics such as ROE and profit margins indicate the overall financial health and efficiency of the firm in using equity capital.
| Year | 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% | 17.20% | 10.60% |
| EBIT | 21.79% | 27.52% | 19.85% |
| EBITDA | 35.92% | 41.39% | 32.97% |
| Gross | 63.99% | 61.17% | 60.98% |
| R&D to Revenue | 0% | 0% | 0.17% |
The solid return on equity and strong operating margins highlight the robust fundamentals and profitability of Consolidated Edison, making it a dependable investment for conservative portfolios.
Price Development
Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 2 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Overall Score: 29/40
⚠️ Rating
Consolidated Edison, Inc. presents a reliable dividend investment with stable historical performance, suitable for risk-averse investors. The robust payout discipline and moderate growth make it a viable option for long-term income preservation, albeit with a need for improved cash flow management to enhance future growth prospects.