ES vs EXC: Dividend Yield, Growth & Safety Comparison
Eversource Energy (ES) and Exelon Corp (EXC) are both in the Utilities sector, making them natural rivals for dividend investors. ES edges ahead on yield at 4.29% versus EXC's 3.54%. For dividend growth, EXC leads with a 5-year CAGR of 10.0% versus ES's 5.7%. EXC holds the edge in dividend safety with a "Safe" rating. ES is a Dividend Aristocrat with 26 years of consecutive increases.
Key Metrics Comparison
| Metric | ES | EXC |
|---|
| Dividend Yield | 4.29% | 3.54% |
| Annual Dividend | $2.97 | $1.58 |
| 5-Year CAGR | 5.7% | 10.0% |
| Payout Ratio | 82% | 57% |
| Consecutive Years | 26 | 4 |
| Price | $73.58 | $48.38 |
Yield Comparison
Eversource Energy (ES) currently yields 4.29%, which is attractive for the broader market. That's 0.75% more than Exelon Corp (EXC), which yields 3.54%. In dollar terms, ES pays $2.97/share annually versus EXC's $1.58/share.
Dividend Growth
Over the past five years, EXC has grown its dividend at a 10.0% CAGR compared to ES's 5.7%. ES: Dividend growth has been steady, with a 3-year CAGR of 5.6% and a 5-year CAGR of 5.7% (10-year: 6.0%). EXC: Dividend growth is slowing — the 3-year CAGR of 5.4% trails the 5-year rate of 10.0% and the 10-year rate of 10.0%.
Dividend Safety
ES's dividend safety is rated "At Risk." The payout ratio of 82% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. EXC's dividend safety is rated "Safe." The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.8x. EXC's payout ratio of 57% is more conservative than ES's 82%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in ES generates approximately $429/year in dividend income, compared to $354/year from EXC — a difference of $75/year. At $100,000, that gap widens to $750/year.
Verdict
- Best for income: ES
- Best for growth: EXC
- Best for safety: EXC
Frequently Asked Questions
Which has a higher dividend yield, ES or EXC?
Eversource Energy (ES) has a higher dividend yield of 4.29% compared to Exelon Corp (EXC) at 3.54%.
Is ES or EXC a better dividend growth stock?
Exelon Corp has the stronger dividend growth with a 5-year CAGR of 10.0%, compared to Eversource Energy's 5.7%.
Which is safer for dividend income, ES or EXC?
Eversource Energy's dividend safety is rated "At Risk" while Exelon Corp is rated "Safe." The payout ratio of 82% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.8x.
How much income does $10,000 in ES vs EXC generate?
A $10,000 investment in ES generates approximately $429/year in dividends, while the same amount in EXC generates about $354/year.
Is ES or EXC a Dividend Aristocrat?
Eversource Energy is a Dividend Aristocrat with 26 consecutive years of increases. Exelon Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, ES or EXC?
Exelon Corp has a lower payout ratio of 57% compared to Eversource Energy's 82%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ES vs EXC: which is better for retirement income?
It depends on your priorities. ES for current income, EXC for dividend growth, EXC for safety. Many retirement investors hold both for diversification.
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