Group 1 - The primary focus of income investors is generating consistent cash flow from liquid investments, including stocks, bonds, and dividends [1][2] - Dividends are a significant component of long-term returns, often contributing over one-third of total returns [2] - Exelon (EXC), a utility company based in Chicago, has experienced a stock price increase of 17.59% year-to-date and currently pays a dividend of $0.8 per share, yielding 3.62% [3] Group 2 - Exelon's annualized dividend of $1.60 represents a 5.3% increase from the previous year, with an average annual increase of 0.01% over the last five years [4] - The company's current payout ratio is 58%, indicating that it pays out 58% of its trailing 12-month earnings per share as dividends [4] - The Zacks Consensus Estimate projects Exelon's earnings to grow to $2.70 per share in 2025, reflecting an 8% increase from the previous year [5] Group 3 - High-yielding stocks may face challenges during periods of rising interest rates, but Exelon is considered a compelling investment opportunity due to its strong dividend profile [7] - Exelon holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [7]
Why Exelon (EXC) is a Great Dividend Stock Right Now