November 01, 2025 a 03:31 pm
EXC: Dividend Analysis - Exelon Corporation
Exelon Corporation demonstrates a robust dividend profile characterized by a solid history of distribution and consistent growth over five decades. With a moderate but stable dividend yield, the company positions itself as a reliable income generator for investors. Exelon's strategic approach in maintaining a reasonable payout ratio emphasizes its commitment to balancing dividend payouts with growth initiatives.
📊 Overview
Exelon Corporation operates within the Utilities sector, where it has maintained a favorable dividend yield of 3.47%. With an enduring history spanning 53 years without major interruptions since 2014, Exelon has demonstrated substantial resilience, offering a current dividend per share of 1.52 USD.
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Utilities | 3.47% | 1.52 USD | 53 years | 2014 |
📈 Dividend History
Understanding Exelon's dividend history provides insights into its dividend policy's reliability and consistency. A company with stable or growing dividends often indicates financial health. The sustained dividend increases over recent years reinforce investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.60 |
| 2024 | 1.52 |
| 2023 | 1.44 |
| 2022 | 1.35 |
| 2021 | 1.09 |
📉 Dividend Growth
Dividend growth rates are pivotal for assessing a company's commitment to enhancing shareholder value. Exelon's dividend has shown positive growth figures over multiple timeframes.
| Time | Growth |
|---|---|
| 3 years | 11.63% |
| 5 years | 7.98% |
The average dividend growth is 7.98% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
A company's payout ratios are critical metrics for dividend sustainability. Exelon's EPS-based payout ratio of 57.42% indicates a reasonable margin to sustain its current dividend outlay, while the negative FCF-based payout ratio suggests potential cash flow constraints that need attention.
| Key figure | Ratio |
|---|---|
| EPS-based | 57.42% |
| Free cash flow-based | -86.99% |
The EPS-based payout ratio is within typical utility sector norms, suggestive of sustainability, whereas the FCF ratio points to potential liquidity issues over certain periods.
👉 Cashflow & Capital Efficiency
An analysis of cash flow metrics and capital efficiency assists in understanding Exelon's financial stability and operational health.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | -5.34% | -7.57% | -4.05% |
| Earnings Yield | 5.09% | 6.51% | 6.52% |
| CAPEX to Operating Cash Flow | 146.76% | 157.52% | 127.44% |
| Stock-based Compensation to Revenue | 0.21% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | -46.76% | -57.52% | -27.44% |
The data reveal challenges in maintaining positive cash flow, vital for ongoing capital projects and debt servicing, but improvements are seen in the recent year.
🏦 Balance Sheet & Leverage Analysis
Balance sheet metrics provide a window into Exelon's financial leverage, liquidity, and overall stability.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 1.62 | 1.71 | 1.73 |
| Debt-to-Assets | 0.42 | 0.43 | 0.43 |
| Debt-to-Capital | 0.62 | 0.63 | 0.63 |
| Net Debt to EBITDA | 5.53 | 5.49 | 5.66 |
| Current Ratio | 0.69 | 0.82 | 0.87 |
| Quick Ratio | 0.62 | 0.74 | 0.78 |
| Financial Leverage | 3.85 | 3.95 | 4.00 |
Exelon exhibits moderate financial leverage, with stable debt levels and a slight improvement in liquidity measures over time, indicative of prudent balance sheet management.
💼 Fundamental Strength & Profitability
Evaluating Exelon's profitability metrics sheds light on its operational efficiency and potential for sustained growth.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 8.77% | 9.04% | 9.14% |
| Return on Assets | 2.28% | 2.29% | 2.28% |
| Margins: Net | 11.37% | 10.71% | 10.68% |
| EBIT | 20.18% | 20.39% | 19.89% |
| EBITDA | 37.61% | 36.53% | 35.50% |
| Gross | 42.10% | 41.09% | 40.84% |
| Research & Development to Revenue | 0% | 0% | 0% |
Exelon shows consistent profitability metrics, with strong margins contributing to solid returns on both equity and assets, underscoring efficient capital usage.
📈 Price Development
🎯 Dividend Scoring System
| Criteria | Score (out of 5) | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 4 |
Total Score: 30/40
💡 Rating
Exelon Corporation is positioned as a solid dividend paying stock within the Utilities sector, offering reliable yield with a history of consistency. The company should be viewed favorably by income-focused investors seeking to balance yield with moderate growth prospects. Additionally, caution may be advised regarding its cash flow coverage due to observed volatility in free cash flow metrics.