EXC vs SRE: Dividend Yield, Growth & Safety Comparison
Exelon Corp (EXC) and Sempra (SRE) are both in the Utilities sector, making them natural rivals for dividend investors. EXC edges ahead on yield at 3.54% versus SRE's 2.85%. For dividend growth, EXC leads with a 5-year CAGR of 10.0% versus SRE's 4.1%. EXC holds the edge in dividend safety with a "Safe" rating. SRE is a Dividend Contender with 15 years of consecutive increases.
Key Metrics Comparison
| Metric | EXC | SRE |
|---|
| Dividend Yield | 3.54% | 2.85% |
| Annual Dividend | $1.58 | $2.56 |
| 5-Year CAGR | 10.0% | 4.1% |
| Payout Ratio | 57% | 79% |
| Consecutive Years | 4 | 15 |
| Price | $48.38 | $94.71 |
Yield Comparison
Exelon Corp (EXC) currently yields 3.54%, which is solid for the broader market. That's 0.69% more than Sempra (SRE), which yields 2.85%. In dollar terms, EXC pays $1.58/share annually versus SRE's $2.56/share.
Dividend Growth
Over the past five years, EXC has grown its dividend at a 10.0% CAGR compared to SRE's 4.1%. 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%. SRE: Dividend growth has been steady, with a 3-year CAGR of 4.1% and a 5-year CAGR of 4.1% (10-year: 6.1%).
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. SRE's dividend safety is rated "Moderate." The payout ratio of 79% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. EXC's payout ratio of 57% is more conservative than SRE's 79%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in EXC generates approximately $354/year in dividend income, compared to $285/year from SRE — a difference of $69/year. At $100,000, that gap widens to $690/year.
Verdict
- Best for income: EXC
- Best for growth: EXC
- Best for safety: EXC
Frequently Asked Questions
Which has a higher dividend yield, EXC or SRE?
Exelon Corp (EXC) has a higher dividend yield of 3.54% compared to Sempra (SRE) at 2.85%.
Is EXC or SRE a better dividend growth stock?
Exelon Corp has the stronger dividend growth with a 5-year CAGR of 10.0%, compared to Sempra's 4.1%.
Which is safer for dividend income, EXC or SRE?
Exelon Corp's dividend safety is rated "Safe" while Sempra 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 79% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x.
How much income does $10,000 in EXC vs SRE generate?
A $10,000 investment in EXC generates approximately $354/year in dividends, while the same amount in SRE generates about $285/year.
Is EXC or SRE a Dividend Aristocrat?
Sempra is a Dividend Contender with 15 consecutive years of increases. Exelon Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, EXC or SRE?
Exelon Corp has a lower payout ratio of 57% compared to Sempra's 79%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EXC vs SRE: which is better for retirement income?
It depends on your priorities. EXC for current income, EXC for dividend growth, EXC for safety. Many retirement investors hold both for diversification.
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