Dividend Stock: Consolidated Edison Increases Dividend
Flip The Switch To Another Utilities Dividend Increase
About: (Consolidated Edison (NYSE: ED), ConEd, Dividend Genius, dividend stock, dividend stocks, stock dividend, stock dividends)
Consolidated Edison (NYSE: ED), one of the largest electric utilities in the U.S., said that fourth-quarter profits were up 26% on higher revenue. Excluding one-time items, ConEd earned 67 cents a share on sales of $3.27 billion, missing Street estimates that called for a profit of 76 cents a share. Tucked away in the quarterly update was news that ConEd will race its quarterly dividend by 0.8%.
That will take the company’s quarterly dividend to 59.5 cents a share from 59 cents. Analysts have said in the past that the time buy ConEd shares is when the stock yields 6%. As of Thursday’s close, the stock was yielding 5.1%. Of course, we shouldn’t forget that ConEd has now increased its dividend for 36 straight years and that’s a dividend history worth getting acquainted with.
The bad news may be that the company expects to earn $3.10 to $3.30 a share in 2010. That’s below Street estimates of $3.36 a share. Then again, if the stock trades lower in the coming days, that 6% yield may be right around the corner.
