CON EDISON DECLARES COMMON STOCK DIVIDEND

Rhea-AI Summary

Consolidated Edison, Inc. (Con Edison) declared a quarterly dividend of 83 cents per share on its common stock, marking the 50th consecutive annual increase for stockholders. This reflects the company's emphasis on providing a return to investors while meeting the needs of customers during the clean energy transition. The company plans to target a dividend payout ratio of between 55% and 65% of its adjusted earnings. However, the press release contains a forward-looking statement, and actual results may differ due to various factors.

Insights

Financial Analyst

Consolidated Edison's announcement of its 50th consecutive annual dividend increase is a testament to the company's financial resilience and commitment to shareholder returns. This move is particularly significant in the utility sector, where steady dividends are a critical factor for investor confidence. The increase from $3.24 to $3.32 per share annually indicates a strategic emphasis on balancing shareholder rewards with the capital demands of the ongoing clean energy transition. The targeted dividend payout ratio of 55% to 65% is within the typical range for utilities, which usually aim to maintain a stable payout ratio to avoid financial strain while funding operations and growth initiatives.

However, investors should be cognizant of the potential implications of the increased capital investments mentioned. While these investments are essential for future growth and compliance with environmental standards, they could add to the company's debt profile and potentially affect future dividend sustainability. The forward-looking statement caveat also serves as a reminder that external factors, regulatory changes and market volatility can impact projected financial outcomes, warranting a cautious approach to interpreting the implications of this dividend increase.

Energy Sector Analyst

The emphasis on the clean energy transition highlighted by Con Edison's CFO underscores the broader industry trend towards sustainable energy solutions. This shift is not merely a corporate responsibility initiative but a strategic business move in response to increasing regulatory pressures and consumer demand for environmentally friendly energy sources. The utility's ability to consistently increase dividends over five decades while navigating the capital-intensive nature of transitioning to clean energy is commendable.

For stakeholders, the long-term benefits of these investments include potential operational efficiencies, regulatory compliance and the ability to attract environmentally conscious investors. On the other hand, the transition carries inherent risks such as technological uncertainties, policy shifts and the challenge of maintaining profitability against the backdrop of large-scale capital projects. Investors should monitor Con Edison's progress in this area closely, as successful execution could enhance the company's competitive position in a transforming energy market.

Dividend Increases for 50^th Consecutive Year

NEW YORK, Jan. 18, 2024 /PRNewswire/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) declared a quarterly dividend of 83 cents a share on its common stock, payable March 15, 2024 to stockholders of record as of February 14, 2024, an annualized increase of 8 cents over the previous annualized dividend of $3.24 a share.

"The 50th consecutive annual increase for stockholders, the longest period of consecutive annual dividend increases of any utility in the S&P 500 index, reflects our continued emphasis on providing a return to our investors while meeting the needs of our customers during the clean energy transition," said Robert Hoglund, Con Edison's senior vice president and chief financial officer. The company now plans to target a dividend payout ratio of between 55% and 65% of its adjusted earnings in anticipation of higher levels of future capital investment and the associated funding needs. 

This press release contains a forward-looking statement that reflects an expectation and not a fact. Actual results may differ materially from this expectation because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission. Con Edison assumes no obligation to update forward-looking statements. This press release also refers to a financial measure, adjusted earnings, that is not determined in accordance with generally accepted accounting principles in the United States of America (GAAP). This non-GAAP financial measure should not be considered as an alternative to net income (which is an indicator of financial performance determined in accordance with GAAP) and may exclude from net income amounts that the company does not consider indicative of its ongoing financial performance.

Consolidated Edison, Inc. is one of the nation's largest investor-owned energy-delivery companies, with approximately $16 billion in annual revenues and $64 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc. (CECONY), a regulated utility providing electric service in New York City and New York's Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan; Orange and Rockland Utilities, Inc. (O&R), a regulated utility serving customers in a 1,300-square-mile-area in southeastern New York State and northern New Jersey; and Con Edison Transmission, Inc., which falls primarily under the oversight of the Federal Energy Regulatory Commission and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers, focusing on New York, New England, the Mid-Atlantic states and the Midwest.

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SOURCE Consolidated Edison, Inc.

FAQ

What is the quarterly dividend declared by Consolidated Edison, Inc. (Con Edison)?

The company declared a quarterly dividend of 83 cents per share on its common stock.

What is the annualized increase in the dividend?

The annualized increase is 8 cents over the previous annualized dividend of $3.24 per share.

What is the company's plan for the dividend payout ratio?

The company plans to target a dividend payout ratio of between 55% and 65% of its adjusted earnings.

What factors may affect the actual results compared to the forward-looking statement in the press release?

Factors such as those identified in reports the company has filed with the Securities and Exchange Commission may affect the actual results.

What is the ticker symbol for Consolidated Edison, Inc. (Con Edison)?

The ticker symbol is ED.