Updated 3/6/25
Consolidated Edison, Inc. (ED) has long been a cornerstone of the utility sector, serving millions of customers in New York with electricity, gas, and steam. With over a century of operations, ConEd is known for its stability, making it a prime candidate for income investors looking for dependable dividends.
Utility stocks don’t offer the excitement of high-growth tech companies, but they provide something just as valuable—predictability. ConEd’s business model, backed by regulated revenue streams, allows it to deliver consistent dividends. In a market full of uncertainty, stocks like this can be a safe harbor for investors seeking reliable income.
Key Dividend Metrics
💰 Forward Dividend Rate: $3.40
📈 Dividend Yield: 3.37%
⏳ 5-Year Average Dividend Yield: 3.67%
📆 Next Dividend Date: March 14, 2025
🔄 Ex-Dividend Date: February 19, 2025
💵 Payout Ratio: 63.36%
Dividend Overview
One of the standout features of ConEd is its commitment to paying dividends. With a yield of 3.37%, it offers an attractive income stream for investors, though slightly below its five-year average of 3.67%. That slight dip can be attributed to a rising stock price, which is generally a positive sign of investor confidence.
What sets ConEd apart is its ability to sustain dividend payments through various market cycles. The company has paid uninterrupted dividends for over 100 years, a rarity in today’s market. Investors looking for a company that delivers income no matter the economic climate will find ConEd’s track record reassuring.
The current payout ratio of 63.36% signals that the dividend is well-supported by earnings. For a utility stock, this is right where it should be—generous but not excessive, leaving room for reinvestment into infrastructure and operations.
Dividend Growth and Safety
Steady dividend growth is a key factor for long-term income investors, and ConEd has proven itself in this area. With 50 consecutive years of dividend increases, the company has earned the title of Dividend Aristocrat. That kind of consistency isn’t easy to come by and speaks to the reliability of the business.
While the growth rate isn’t particularly high—typically in the 2-4% annual range—it’s enough to keep up with inflation while maintaining the stock’s appeal for income seekers. Investors who prioritize stability over rapid growth will appreciate this slow but steady increase in payouts.
From a risk perspective, ConEd’s low beta of 0.28 means it doesn’t experience wild price swings like more volatile stocks. That’s a big plus for those who want to sleep easy at night knowing their investment won’t see dramatic fluctuations.
Chart Analysis
Price Action and Moving Averages
The price of Consolidated Edison (ED) has been on a strong recovery after a period of decline in late 2024. The stock recently pushed above the 50-day moving average (orange line), which had previously acted as resistance. This is a positive sign that momentum is shifting back in favor of the bulls.
Meanwhile, the 200-day moving average (blue line) is still trending upward, reinforcing the long-term uptrend. However, during the last quarter of 2024, the stock dipped below this key level, signaling a temporary downtrend. The recent move back above both moving averages suggests renewed strength, potentially indicating a continuation of the longer-term bullish structure.
Volume and Market Participation
Volume has been picking up, particularly on recent up days. This suggests that buyers are stepping in with conviction. When the stock was trading near its lows in December and January, volume was relatively muted, indicating uncertainty. The latest increase in volume accompanying price gains is a healthy sign that the rally is being supported by real buying interest rather than just a technical bounce.
Some of the largest volume spikes occurred in October and February, which coincided with key turning points in the stock’s trend. This suggests that institutional players may have been involved in these moves, either unloading shares during the late-2024 sell-off or accumulating positions in early 2025.
Relative Strength Index (RSI)
The RSI indicator at the bottom of the chart shows that the stock recently reached overbought territory, moving above 70. This suggests that in the short term, the stock could be due for some consolidation or a slight pullback. However, RSI has remained strong, indicating that momentum is still in the stock’s favor.
Back in late 2024, RSI was deeply oversold as the stock bottomed out near $90. The recovery from that level has been steady, and the recent breakout above 100 suggests that demand remains strong. Watching whether RSI cools off or holds in a strong range will be key in determining the next move.
Recent Candle Patterns
The last five candles tell an interesting story. There have been multiple long lower wicks, which indicate that buyers are stepping in to support the stock on dips. This suggests that demand is strong even as the stock approaches key psychological resistance near $101.
The most recent candle shows a bit of hesitation, with a small-bodied close near the middle of the day’s range. This could indicate some profit-taking after the sharp rally. However, the overall trend remains intact unless there is a decisive move back below the 50-day moving average.
Key Levels to Watch
The $101.60 level, which was tested on the most recent high, could act as short-term resistance. A strong break above this level could open the door for a test of the previous highs around $105-$107.
On the downside, the 50-day moving average, now turning upward, should act as initial support near $96. If that level fails, the next key support area is around $92-$93, where the stock previously found buyers.
Momentum remains strong, but the stock may need to consolidate before its next major move. The reaction at current levels will provide more clues about whether this rally can continue or if a short-term pullback is in store.
Analyst Ratings
💹 Consolidated Edison (ED) has recently experienced a mix of analyst opinions, reflecting both optimism and caution.
Upgrades
📈 In February 2025, Barclays raised its price target for ED from $92 to $95, maintaining an “Underweight” rating. This adjustment suggests a slightly more favorable view of the company’s valuation, possibly due to improved financial performance or market conditions. While not a full upgrade to a bullish stance, the revised price target signals some confidence in the company’s ability to sustain its operations and cash flow.
Downgrades
📉 In January 2025, Evercore ISI downgraded ED from “Strong Buy” to “Hold.” This shift reflects a more cautious stance, potentially due to concerns about the company’s ability to maintain earnings growth in the face of rising interest rates and inflationary pressures. Analysts cited a need for more clarity on regulatory developments and cost controls before maintaining a bullish recommendation.
Consensus Price Target
📊 The consensus among analysts sets ED’s average 12-month price target at approximately $100.25. This target is based on evaluations from multiple Wall Street analysts, with forecasts ranging from a low of $85 to a high of $116. The average price target suggests a potential upside of about 4.84% from the last closing price of $95.62.
🔍 These mixed ratings and the consensus price target indicate a balanced perspective among analysts, reflecting both the strengths and potential challenges facing Consolidated Edison in the current market environment. While some analysts see value in its stability and defensive nature, others are taking a wait-and-see approach due to macroeconomic headwinds.
Earnings Report Summary
Consolidated Edison’s latest earnings report gives a clear picture of where the company stands and where it’s headed. The numbers show some shifts from last year, but overall, the business remains steady, with a focus on long-term growth and operational efficiency.
Annual Performance
For 2024, Con Edison posted net income of $1.82 billion, which translates to earnings per share (EPS) of $5.26. That’s down from the previous year, but it’s important to remember that 2023 was an unusually strong year due to gains from selling its Clean Energy Businesses. Without that one-time boost, the company’s core earnings actually improved. On an adjusted basis, EPS came in at $5.40, a healthy increase from $5.07 in 2023, showing that Con Edison is managing its operations efficiently.
Fourth Quarter Highlights
The last quarter of 2024 showed some mixed results. Net income for Q4 came in at $310 million, or $0.90 per share, compared to $335 million, or $0.97 per share, in the same quarter of 2023. Adjusted earnings, which smooth out the impact of one-time events, landed at $0.98 per share, just slightly below last year’s $1.00 per share. While this isn’t a huge drop, it suggests some near-term challenges, though the company’s overall direction remains positive.
Revenue and Growth
Revenue for the fourth quarter hit $3.67 billion, coming in slightly above what analysts had predicted. This steady performance shows that Con Edison’s business model remains resilient even as the energy industry goes through changes. The company has been making major investments in improving infrastructure and modernizing its electric and gas systems. These efforts not only improve reliability but also help the company prepare for future demand.
Looking Ahead
For 2025, Con Edison expects earnings per share to land somewhere between $5.50 and $5.70. That suggests confidence in its strategy, but there are still potential headwinds, including regulatory shifts and broader economic factors that could impact costs and demand.
All in all, the company remains a steady player in the utility sector. While it’s not a high-growth stock, Con Edison’s ability to generate consistent earnings and invest in the future keeps it in a solid position. The focus on infrastructure and clean energy will likely be key drivers in the years ahead, keeping the business strong even as the energy landscape continues to evolve.
Financial Health and Stability
Dividend safety always comes down to a company’s financial health. Looking at the numbers, ConEd appears to be in solid shape.
Revenue over the trailing twelve months stands at $15.26 billion, with net income of $1.82 billion. Operating cash flow is also strong at $3.61 billion, ensuring that dividends remain well-funded. However, one area to watch is the company’s debt load.
With $27.83 billion in total debt and a debt-to-equity ratio of 126.71%, ConEd carries a significant amount of leverage. That’s not unusual for a utility company, as these businesses rely on borrowing to fund infrastructure projects. As long as cash flow remains stable, the debt shouldn’t be a major concern, but it’s something investors should monitor.
Return on equity (ROE) sits at 8.44%, while return on assets (ROA) is 3.00%. These figures suggest moderate profitability, which is typical for a regulated utility. ConEd isn’t a high-margin business, but it doesn’t need to be. Its primary appeal lies in its consistency and reliability.
Valuation and Stock Performance
At $103.85 per share, ConEd is trading near its 52-week high of $107.75, showing that the stock has gained traction in recent months. With a 52-week low of $87.16, it has demonstrated resilience, reinforcing its status as a defensive investment.
The stock’s valuation is reasonable, with a trailing price-to-earnings (P/E) ratio of 19.26 and a forward P/E of 18.02. These figures are in line with what’s expected for a utility company—moderate but not overly expensive.
The price-to-book ratio of 1.59 also suggests that ConEd is fairly valued, without being excessively overpriced. Investors looking for stability rather than deep value or growth opportunities may find this a comfortable entry point.
Technical indicators show the 50-day moving average at $93.94 and the 200-day moving average at $96.91. The fact that the stock is trading above both suggests upward momentum, possibly driven by investors seeking defensive names in an uncertain market.
Risks and Considerations
No stock is without risk, and ConEd has its share of challenges that investors should be aware of.
1️⃣ Regulatory Risk – As a regulated utility, ConEd’s pricing and profitability depend on government oversight. Any unfavorable rulings could limit revenue growth.
2️⃣ High Debt – The company’s significant debt burden could become a concern if interest rates stay high, making borrowing more expensive.
3️⃣ Slower Growth – While reliable, ConEd isn’t a growth stock. Investors seeking high returns might find its steady but slow appreciation underwhelming.
4️⃣ Inflation and Interest Rates – Rising interest rates can make utility stocks less attractive, as investors may shift toward fixed-income alternatives.
5️⃣ Climate and Weather Risks – As a provider of essential services, ConEd is exposed to potential disruptions from extreme weather events, which could lead to unexpected costs.
Final Thoughts
For investors seeking a steady income stream, Consolidated Edison is a strong candidate. Its century-long dividend history, reliable cash flow, and defensive nature make it a compelling choice for those prioritizing stability.
While it’s not a high-growth stock, it serves an important role in an income-focused portfolio. The predictable revenue model and consistent dividend growth provide reassurance in times of market uncertainty.
That said, investors should consider the potential risks, particularly ConEd’s debt load and regulatory environment. While these are standard concerns for utilities, they highlight the importance of keeping an eye on long-term financial health.
For those who value consistent dividends and lower volatility, ConEd remains one of the most reliable options in the utility sector.
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