EXC vs NEE: Dividend Yield, Growth & Safety Comparison
Exelon Corp (EXC) and Nextera Energy Inc (NEE) are both in the Utilities sector, making them natural rivals for dividend investors. EXC offers a significantly higher 3.54% yield compared to NEE's 2.49%, a gap of 1.04%. Both stocks show similar dividend growth rates, each around 10.0% over the past five years. EXC holds the edge in dividend safety with a "Safe" rating. NEE is a Dividend Aristocrat with 30 years of consecutive increases.
Key Metrics Comparison
| Metric | EXC | NEE |
|---|
| Dividend Yield | 3.54% | 2.49% |
| Annual Dividend | $1.58 | $2.27 |
| 5-Year CAGR | 10.0% | 10.2% |
| Payout Ratio | 57% | 69% |
| Consecutive Years | 4 | 30 |
| Price | $48.38 | $93.81 |
Yield Comparison
Exelon Corp (EXC) currently yields 3.54%, which is solid for the broader market. That's 1.04% more than Nextera Energy Inc (NEE), which yields 2.49%. In dollar terms, EXC pays $1.58/share annually versus NEE's $2.27/share.
Dividend Growth
Over the past five years, NEE has grown its dividend at a 10.2% CAGR compared to EXC's 10.0%. 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%. NEE: Dividend growth has been steady, with a 3-year CAGR of 10.1% and a 5-year CAGR of 10.2% (10-year: 11.2%).
Dividend Safety
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. NEE's dividend safety is rated "Moderate." The payout ratio of 69% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. EXC's payout ratio of 57% is more conservative than NEE's 69%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in EXC generates approximately $354/year in dividend income, compared to $249/year from NEE — a difference of $105/year. At $100,000, that gap widens to $1050/year.
Verdict
- Best for income: EXC
- Best for safety: EXC
Frequently Asked Questions
Which has a higher dividend yield, EXC or NEE?
Exelon Corp (EXC) has a higher dividend yield of 3.54% compared to Nextera Energy Inc (NEE) at 2.49%.
Is EXC or NEE a better dividend growth stock?
Nextera Energy Inc has the stronger dividend growth with a 5-year CAGR of 10.2%, compared to Exelon Corp's 10.0%.
Which is safer for dividend income, EXC or NEE?
Exelon Corp's dividend safety is rated "Safe" while Nextera Energy Inc is rated "Moderate." The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.8x. The payout ratio of 69% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
How much income does $10,000 in EXC vs NEE generate?
A $10,000 investment in EXC generates approximately $354/year in dividends, while the same amount in NEE generates about $249/year.
Is EXC or NEE a Dividend Aristocrat?
Nextera Energy Inc is a Dividend Aristocrat with 30 consecutive years of increases. Exelon Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, EXC or NEE?
Exelon Corp has a lower payout ratio of 57% compared to Nextera Energy Inc's 69%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EXC vs NEE: which is better for retirement income?
It depends on your priorities. EXC for current income, EXC for safety. Many retirement investors hold both for diversification.
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