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Here's Why You Should Add Exelon Stock to Your Portfolio Now
EXCExelon(EXC) ZACKS·2025-04-15 11:05

Core Viewpoint - Exelon Corporation (EXC) is positioned as a strong investment option in the utility sector due to its systematic investments aimed at enhancing transmission and distribution infrastructure, which will improve service reliability and operational resilience [1] Group 1: Growth Projections - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has risen by 1.1% to 2.66overthepast60days[2]TheZacksConsensusEstimatefor2025salesisprojectedat2.66 over the past 60 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at 23.99 billion, reflecting a year-over-year increase of 4.2% [2] - Exelon's long-term earnings growth rate is estimated at 5.99%, with a trailing four-quarter average earnings surprise of 7.6% [2] Group 2: Solvency - The time-to-interest earned ratio at the end of Q4 2024 was 2.4, indicating the company's strong ability to meet future interest obligations [3] Group 3: Dividend Growth - Exelon has declared a quarterly dividend of 40 cents per share for Q1 2025, leading to an annualized dividend of 1.60[4]Thecompanyaimstoincreaseitsdividendpershareatarateof571.60 [4] - The company aims to increase its dividend per share at a rate of 5-7% annually through 2028, subject to board approval, with a long-term dividend payout ratio projected at 60% [5] - Exelon's current dividend yield stands at 3.41%, outperforming the Zacks S&P 500 composite average of 1.38% [5] Group 4: Strategic Investments - Exelon plans to invest nearly 38 billion in regulated utility operations from 2025 to 2028, marking a 10% increase from previous plans [6] - The investment allocation includes 21.7billionforelectricdistribution,21.7 billion for electric distribution, 12.6 billion for electric transmission, and $3.8 billion for gas delivery [6] Group 5: Share Price Performance - Over the past three months, Exelon's stock has returned 19.1%, significantly outperforming the industry's growth of 1.8% [7]