March 06, 2026 a 07:31 am
EXC: Dividend Analysis - Exelon Corporation
Exelon Corporation, a leader in the utilities sector, has demonstrated a consistent dividend payout over the decades. With a current dividend yield standing at 3.29%, and a long dividend history of 54 years, the company ensures reliable returns to its shareholders. Despite challenges, Exelon has not cut or suspended its dividends, reinforcing investor confidence. This analysis delves into the financial metrics and dividend profile, providing insights into Exelon's performance and strategic direction.
📊 Overview
Exelon operates in the utilities sector, a traditionally stable market with predictable cash flows, favorable for dividend stability.
| Metric | Value |
|---|---|
| Sector | Utilities |
| Dividend Yield | 3.29% |
| Current Dividend Per Share | 1.60 USD |
| Dividend History | 54 years |
| Last Cut or Suspension | None |
📈 Dividend History
Maintaining a steady dividend track record indicates a company's strong earnings capability. Exelon's consistent dividend over the years showcases its resilience and financial discipline.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 0.42 |
| 2025 | 1.60 |
| 2024 | 1.52 |
| 2023 | 1.44 |
| 2022 | 1.35 |
📉 Dividend Growth
Exelon's dividend growth, though modest, indicates an incremental and sustainable increase, essential for long-term investor returns.
| Time | Growth |
|---|---|
| 3 years | 5.83% |
| 5 years | 7.93% |
The average dividend growth is 7.93% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are crucial for assessing the sustainability of dividends. A balanced ratio ensures capacity for growth and reinvestment.
| Key Figure | Ratio |
|---|---|
| EPS-based | 58.42% |
| Free cash flow-based | -71.91% |
While the EPS payout ratio is moderate at 58.42%, indicating capacity for further dividends, the negative FCF ratio highlights challenges in cash generation relative to its payouts.
💵 Cashflow & Capital Efficiency
Cash flow metrics provide insights on operational efficiency and investment capability, essential for sustaining dividend payments.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | -7.57% | -4.05% | -5.16% |
| Earnings Yield | 6.51% | 6.52% | 6.28% |
| CAPEX to Operating Cash Flow | 1.58% | 1.27% | 1.36% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | -57.52% | -27.44% | -36.38% |
The negative free cash flow yield indicates potential cash constraints. However, a stable earnings yield suggests effective revenue generation per share.
📋 Balance Sheet & Leverage Analysis
Examining leverage ratios and liquidity metrics helps evaluate a company's financial health and risk.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.71 | 1.73 | 1.76 |
| Debt-to-Assets | 43.21% | 43.28% | 43.37% |
| Debt-to-Capital | 63.08% | 63.41% | 63.71% |
| Net Debt to EBITDA | 5.49 | 5.66 | 5.62 |
| Current Ratio | 0.92 | 0.87 | 0.92 |
| Quick Ratio | 0.74 | 0.78 | 0.84 |
| Financial Leverage | 3.95 | 4.00 | 4.05 |
The increasing debt-to-equity ratio requires monitoring, though a solid interest coverage ratio mitigates immediate concern.
💰 Fundamental Strength & Profitability
Profitability metrics like ROE and margins indicate financial efficiency and the effectiveness of management strategies.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 9.04% | 9.14% | 9.61% |
| Return on Assets | 2.29% | 2.28% | 2.37% |
| Margins Net | 10.71% | 10.68% | 11.41% |
| EBIT Margin | 20.39% | 19.89% | 21.21% |
| EBITDA Margin | 36.53% | 35.50% | 36.22% |
| Gross Margin | 41.09% | 40.84% | 41.24% |
| Research & Development to Revenue | 0% | 0% | 0% |
Exelon maintains healthy profitability margins, signaling potential for future growth in shareholder value.
📉 Price Development
🗣️ Dividend Scoring System
| Criterion | Score (/5) | 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 |
Total Score: 30/40
✅ Rating
Exelon's robust dividend profile, marked by stability and longevity, makes it an appealing choice for income-focused investors. Despite some challenges in cash flow coverage, the company shows financial robustness in maintaining its dividend stream. Thus, Exelon is a reliable pick for those seeking consistent income with moderate growth prospects.