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EXC vs XEL: Dividend Comparison

EXC$48.39
Exelon Corp
Utilities
vs
XEL$81.32
Xcel Energy Inc
Utilities

Dividend data as of

Exelon Corp (EXC) and Xcel Energy Inc (XEL) are both in the Utilities sector, making them natural rivals for dividend investors. EXC edges ahead on yield at 3.54% versus XEL's 2.94%. For dividend growth, XEL leads with a 5-year CAGR of 11.5% versus EXC's 10.0%. EXC holds the edge in dividend safety with a "Safe" rating.

Verdict

Best for Income
EXC
Higher yield at 3.54%
Best for Growth
XEL
5yr CAGR of 11.5%
Best for Safety
EXC
Rated "Safe"
Metric
Price
$48.39
$81.32
Dividend Yield
3.54%
2.94%
Annual Dividend
$1.58
$2.28
5yr Div CAGR
10.0%
11.5%
3yr Div CAGR
5.4%
16.6%
Consecutive Years
4
1
Payout Ratio
56.63%
66.67%
P/E Ratio
Market Cap
Income on $10k
$354/yr
$294/yr

Yield Analysis

EXC
3.54%
XEL
2.94%

EXC yields 0.60% more than XEL. In dollar terms, EXC pays $1.58/share vs XEL's $2.28/share annually.

Dividend Growth

EXC 5yr CAGR
10.0%
decelerating
XEL 5yr CAGR
11.5%
accelerating

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%.

XEL: Dividend growth is accelerating — the 3-year CAGR of 16.6% exceeds the 5-year rate of 11.5% and the 10-year rate of 8.5%.

Dividend Safety

EXC
Safe
Payout Ratio57%
XEL
Moderate
Payout Ratio67%

EXC: The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.8x.

XEL: The payout ratio of 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x.

Estimated Annual Dividend Income

Based on current dividend yields. Actual income may vary.

Investment
EXC
XEL
$10,000
$354/yr
$294/yr
$50,000
$1,770/yr
$1,471/yr
$100,000
$3,539/yr
$2,942/yr

What does $10,000 buy in EXC vs XEL today?

At $48.38 per share, $10,000 buys about 206.7 shares of Exelon Corp (EXC). Each share pays $1.58 per year in dividends, so the position starts out generating roughly $327 per year — about $27 a month.

At $81.32 per share, $10,000 buys about 123.0 shares of Xcel Energy Inc (XEL). Each share pays $2.28 per year in dividends, so the position starts out generating roughly $280 per year — about $23 a month.

EXC is the larger income stream from day one: $46 per year more on the same $10,000 invested.

What could $10,000 of EXC or XEL income look like in 10 years?

Exelon Corp (EXC) has raised its dividend about 10.0% a year over the past five years. If that pace held, the $354 per year that $10,000 generates today at the current 3.54% yield would reach $918 per year by 2036 — a 9.2% yield on the original cost.

Xcel Energy Inc (XEL) has raised its dividend about 11.5% a year over the past five years. If that pace held, the $294 per year that $10,000 generates today at the current 2.94% yield would reach $871 per year by 2036 — a 8.7% yield on the original cost.

On those trailing rates, EXC pays more in 2036: $918 versus $871 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.

When would XEL's dividend growth overtake EXC's higher yield?

Xcel Energy Inc (XEL) yields less today (2.94% vs 3.54%) but has grown its dividend faster — 11.5% vs 10.0% a year over the past five years. If both trends continued, a $10,000 position in XEL would start out-earning the same position in EXC around 2041 (roughly 15 years from now), paying about $1,498 per year at the crossover. Before that point, EXC pays more each year; after it, the gap compounds in XEL's favor.

Can EXC and XEL afford their dividends?

Exelon Corp (EXC) earns $2.79 per share against $1.58 paid out in dividends — 1.8x coverage (a 57% payout ratio).

Xcel Energy Inc (XEL) earns $3.42 per share against $2.28 paid out in dividends — 1.5x coverage (a 67% payout ratio).

Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.

Which fits an early-retirement income portfolio better, EXC or XEL?

For income you need right now, Exelon Corp (EXC) leads: $100,000 invested today pays about $295 a month at the current 3.54% yield, versus $245 a month from Xcel Energy Inc (XEL) at 2.94%.

With a decade or more before the income is needed, XEL's faster dividend growth (11.5% vs 10.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.

On consistency: EXC has raised its dividend 4 consecutive years; XEL has raised its dividend 1 consecutive year.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.

$10,000 with DRIP: projected annual income

If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,300/yr in EXC vs $1,163/yr in XEL by year 10.

Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.

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