This is Why Exelon (EXC) is a Great Dividend Stock

Core Insights - The article emphasizes the importance of dividends for income investors, highlighting that dividends can significantly contribute to long-term returns, often exceeding one-third of total returns [2]. Company Overview - Exelon (EXC) is a Chicago-based company in the Utilities sector, with a stock price change of 25.88% since the beginning of the year [3]. - The company currently pays a dividend of $0.40 per share, resulting in a dividend yield of 3.38%, which is higher than the Utility - Electric Power industry's yield of 3.08% and the S&P 500's yield of 1.48% [3]. Dividend Performance - Exelon's annualized dividend is $1.60, reflecting a 5.3% increase from the previous year [4]. - Over the past five years, Exelon has increased its dividend three times, averaging an annual increase of 0.70% [4]. - The company's current payout ratio is 60%, indicating that it pays out 60% of its trailing 12-month earnings per share as dividends [4]. Earnings Outlook - For the fiscal year, Exelon anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $2.69 per share, representing a 7.60% increase from the previous year [5]. Investment Considerations - Exelon is positioned as an attractive dividend investment, particularly appealing to income investors, and holds a strong Zacks Rank of 2 (Buy) [6].