Summary
ConEd is a dividend aristocrat that has hiked its dividend for 44 consecutive years.
The company's base electric and natural gas distribution businesses generate among the most stable earnings in the utility sector.
ConEd recently announced it was buying 981 MW of solar electric power generation assets from Sempra Energy.
In January, the company increased its quarterly dividend by 3.6%. The stock currently yields 3.8%.
Investors now get a nice combination of yield and renewable energy exposure.
Consolidated Edison (ED) is what some might call a stodgy old utility company. And for the most part, it is. Perfect for grandmothers and widows looking for a stable, secure, and investment grade utility company. That's because an estimated 90% of earnings over the next five years will come from its baseline electric and gas distribution businesses. As a result, ConEd's earnings are among the most stable in the entire utility sector. However, the company is increasing its exposure to clean energy through a recently announced deal to acquire 981 MW of solar electric production projects from Sempra Energy (SRE). These assets should help grow EPS by an estimated ~4% over the next 5 years. The current dividend is 3.8%.
Bottom line: ConEd is a pleasant income producer with growing exposure to clean energy.
