Why Exelon (EXC) is a Great Dividend Stock Right Now
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Exelon (EXC) is headquartered in Chicago, and is in the Utilities sector. The stock has seen a price change of 17.59% since the start of the year. The energy company is paying out a dividend of $0.8 per share at the moment, with a dividend yield of 3.62% compared to the Utility - Electric Power industry's yield of 3.14% and the S&P 500's yield of 1.53%.
In terms of dividend growth, the company's current annualized dividend of $1.60 is up 5.3% from last year. Exelon has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 0.01%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Exelon's current payout ratio is 58%, meaning it paid out 58% of its trailing 12-month EPS as dividend.
EXC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.70 per share, with earnings expected to increase 8% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, EXC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exelon Corporation (EXC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Washington Post
18 minutes ago
- Washington Post
ABM Industries: Fiscal Q2 Earnings Snapshot
NEW YORK — NEW YORK — ABM Industries Inc. (ABM) on Friday reported fiscal second-quarter profit of $42.2 million. On a per-share basis, the New York-based company said it had net income of 67 cents. Earnings, adjusted for one-time gains and costs, were 86 cents per share. The results did not meet Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 87 cents per share.
Yahoo
28 minutes ago
- Yahoo
ABM Industries: Fiscal Q2 Earnings Snapshot
NEW YORK (AP) — NEW YORK (AP) — ABM Industries Inc. (ABM) on Friday reported fiscal second-quarter profit of $42.2 million. On a per-share basis, the New York-based company said it had net income of 67 cents. Earnings, adjusted for one-time gains and costs, were 86 cents per share. The results did not meet Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 87 cents per share. The provider of cleaning and other maintenance services for commercial buildings, hospitals and airports posted revenue of $2.11 billion in the period, surpassing Street forecasts. Four analysts surveyed by Zacks expected $2.07 billion. ABM Industries expects full-year earnings in the range of $3.65 to $3.80 per share. ABM Industries shares have climbed slightly since the beginning of the year. The stock has climbed slightly more than 7% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ABM at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
37 minutes ago
- Business Wire
Sandisk Announces Pricing of Upsized Secondary Offering of Common Stock
MILPITAS, Calif.--(BUSINESS WIRE)--Sandisk Corporation (Nasdaq: SNDK) (the 'Company' or 'Sandisk') announced today the pricing of a secondary public offering (the 'Offering') of 18,534,581 shares of its common stock (the 'SNDK Shares') currently owned by Western Digital Corporation, the Company's former parent ('WDC'). The size of the offering reflects an increase from the 17,000,000 shares of common stock originally proposed to be sold. The SNDK Shares will be offered at a public offering price of $38.50 per share. Sandisk is not selling any shares of common stock and will not receive any proceeds from the sale of the SNDK Shares in the Offering or from the debt-for-equity exchange (described below). Prior to the closing of the Offering, WDC is expected to exchange the SNDK Shares for certain indebtedness of WDC held by affiliates of J.P. Morgan Securities LLC and BofA Securities (such affiliates, the 'debt-for-equity exchange parties'). Upon the consummation of the debt-for-equity exchange, WDC is expected to deliver the SNDK Shares, at the request of the debt-for-equity exchange parties, to J.P. Morgan Securities LLC and BofA Securities, in their capacity as selling stockholders in the Offering (in such capacity, the 'Selling Stockholders'). Following the debt-for-equity exchange, if consummated, the Selling Stockholders intend to sell the SNDK Shares to the underwriters in the Offering. The Selling Stockholders in the Offering have granted the underwriters an option (the 'greenshoe') to purchase up to 2,780,187 additional shares of Sandisk common stock at the public offering price less the underwriting discount for 13 days. Following the completion of the debt-for-equity exchange, and if the greenshoe is completely exercised by the underwriters, WDC would own 7,513,019 shares of SNDK Shares. J.P. Morgan Securities LLC and BofA Securities are acting as the joint lead book-runners for the Offering and the representatives of the underwriters of the Offering. The Offering is expected to close on June 9, 2025, subject to customary closing conditions. A registration statement on Form S-1, including a prospectus, relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the 'SEC') on June 5, 2025. The Offering is being made only by means of a prospectus. You may obtain these documents for free by visiting EDGAR on the SEC's website at Alternatively, copies of the final prospectus relating to the Offering, when available, may be obtained from J.P. Morgan Securities LLC, Attention: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by e-mail at prospectus-eq_fi@ and postsalemanualrequests@ or BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, or by e-mail at This press release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Sandisk Sandisk is a leading developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology. With a differentiated innovation engine driving advancements in storage and semiconductor technologies, its broad and ever-expanding portfolio delivers powerful flash storage solutions for everyone from students, gamers and home offices, to the largest enterprises and public clouds to capture, preserve, access and transform an ever-increasing diversity of data. The Company's solutions include a broad range of solid state drives, embedded products, removable cards, universal serial bus drives, and wafers and components. Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal securities laws, including statements about the timing of completion of the Offering and the expected completion of the debt-for-equity exchange. These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a discussion of important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, please refer to the risks discussed under the caption 'Risk Factors' in the Company's Registration Statement on Form S‑1 filed on April 18, 2025, as amended on May 1, 2025, May 30, 2025 and June 4, 2025. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update or revise these forward-looking statements, except as required by law.
