June 26, 2025 a 07:46 am
EXC: Dividend Analysis - Exelon Corporation
Exelon Corporation, a prominent player in the energy sector, offers a stable dividend yield of 3.58%, making it an attractive choice for income-seeking investors. With a substantial history of 53 years without any recent cuts or suspensions, Exelon demonstrates strong dividend reliability. The modest growth rates over three and five years signal a steady, albeit conservative, dividend policy.
📊 Overview
Exelon Corporation operates within the vital energy sector, delivering consistent dividends. Its dividend yield of 3.58% combined with a solid dividend history emphasizes stability. The current dividend per share stands at $1.52, supporting a long-term value proposition.
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut/Suspension |
|---|---|---|---|---|
| Energy | 3.58% | $1.52 USD | 53 years | None |
🗣️ Dividend History
Exelon's robust dividend history is critical as it reflects the company's commitment to shareholder returns and financial strength. Consistently paying dividends for over five decades underscores its reliability and investor trust.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.80 |
| 2024 | 1.52 |
| 2023 | 1.44 |
| 2022 | 1.35 |
| 2021 | 1.09 |
📈 Dividend Growth
Dividend growth is pivotal for increasing investor returns and maintaining purchasing power. Exelon exhibits a modest but stable dividend growth, reflecting strategic allocation of free cash flow and capital.
| Time | Growth |
|---|---|
| 3 years | 11.63% |
| 5 years | 7.98% |
The average dividend growth of 7.98% over 5 years indicates moderate yet steady progress, aligning with disciplined capital management strategies.
⚠️ Payout Ratio
Payout ratios highlight a company's ability to sustain dividends. Exelon's EPS-based payout ratio stands at 56.52%, which is within a prudent range, suggesting a sustainable dividend policy.
| Key Figure | Ratio |
|---|---|
| EPS-based | 56.52% |
| Free cash flow-based | -102.33% |
While the EPS-based ratio is healthy, the negative free cash flow-based payout ratio suggests some challenges in transforming operating profits into cash flow, requiring close monitoring.
✅ Cashflow & Capital Efficiency
The ability to generate free cash relative to earnings signals efficient capital usage. Efficiency metrics shed light on operational efficacy and financial robustness.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX to Operating Cash Flow | Stock-based Compensation to Revenue | Free Cash Flow / Operating Cash Flow Ratio |
|---|---|---|---|---|---|
| 2024 | -4.05% | 6.52% | 1.27 | 0% | -27.44% |
| 2023 | -7.57% | 6.51% | 1.57 | 0% | -57.52% |
| 2022 | -5.34% | 5.09% | 1.47 | 0.21% | -46.76% |
The negative free cash flow yield alongside a high CAPEX/Operating Cash Flow ratio suggests demanding capital expenditures potentially affecting liquidity, albeit sustaining future growth.
📈 Balance Sheet & Leverage Analysis
Financial leverage and ratios assess the structural stability and solvency of Exelon's financial position.
| Year | Debt-to-Equity | Debt-to-Assets | Debt-to-Capital | Net Debt to EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2024 | 1.73 | 0.43 | 0.63 | 5.70 | 0.87 | 0.78 | 4.00 |
| 2023 | 1.71 | 0.43 | 0.63 | 5.49 | 0.81 | 0.73 | 3.94 |
| 2022 | 1.62 | 0.42 | 0.62 | 5.37 | 0.69 | 0.62 | 3.85 |
Although financial leverage is significant, ratios are within acceptable bounds demonstrating manageable debt levels conducive to long-term growth.
🗣️ Fundamental Strength & Profitability
Exelon's profitability ratios and operational metrics illustrate core business efficacy and potential growth trajectory.
| Year | Return on Equity | Return on Assets | Net Margin | EBIT Margin | EBITDA Margin | Gross Margin | R&D to Revenue |
|---|---|---|---|---|---|---|---|
| 2024 | 9.14% | 2.28% | 10.68% | 19.89% | 35.51% | 42.88% | 0% |
| 2023 | 9.04% | 2.29% | 10.71% | 20.39% | 36.53% | 41.09% | 0% |
| 2022 | 8.77% | 2.28% | 11.37% | 20.18% | 38.70% | 42.10% | 0.21% |
Mature net and EBIT margins coupled with robust gross margins reflect operational efficiency, although R&D investment remains limited, focusing on existing capabilities.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 4 |
Overall Score: 30/40
Rating
Exelon Corporation presents a mix of stability and moderate growth avenues. Its excellent dividend track record paired with healthy financial ratios situates the company as a reliable but conservatively growing dividend stock, thereby earning a strong "Hold" recommendation for income-focused portfolios.