EXC vs XEL: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | EXC | XEL |
|---|
| Dividend Yield | 3.54% | 2.94% |
| Annual Dividend | $1.58 | $2.28 |
| 5-Year CAGR | 10.0% | 11.5% |
| Payout Ratio | 57% | 67% |
| Consecutive Years | 4 | 1 |
| Price | $48.38 | $81.32 |
Yield Comparison
Exelon Corp (EXC) currently yields 3.54%, which is solid for the broader market. That's 0.60% more than Xcel Energy Inc (XEL), which yields 2.94%. In dollar terms, EXC pays $1.58/share annually versus XEL's $2.28/share.
Dividend Growth
Over the past five years, XEL has grown its dividend at a 11.5% 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%. 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'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. XEL's dividend safety is rated "Moderate." 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. EXC's payout ratio of 57% is more conservative than XEL's 67%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in EXC generates approximately $354/year in dividend income, compared to $294/year from XEL — a difference of $60/year. At $100,000, that gap widens to $600/year.
Verdict
- Best for income: EXC
- Best for growth: XEL
- Best for safety: EXC
Frequently Asked Questions
Which has a higher dividend yield, EXC or XEL?
Exelon Corp (EXC) has a higher dividend yield of 3.54% compared to Xcel Energy Inc (XEL) at 2.94%.
Is EXC or XEL a better dividend growth stock?
Xcel Energy Inc has the stronger dividend growth with a 5-year CAGR of 11.5%, compared to Exelon Corp's 10.0%.
Which is safer for dividend income, EXC or XEL?
Exelon Corp's dividend safety is rated "Safe" while Xcel 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 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x.
How much income does $10,000 in EXC vs XEL generate?
A $10,000 investment in EXC generates approximately $354/year in dividends, while the same amount in XEL generates about $294/year.
Which has a lower payout ratio, EXC or XEL?
Exelon Corp has a lower payout ratio of 57% compared to Xcel Energy Inc's 67%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EXC vs XEL: which is better for retirement income?
It depends on your priorities. EXC for current income, XEL for dividend growth, EXC for safety. Many retirement investors hold both for diversification.
EXC Dividend Analysis | XEL Dividend Analysis | All Comparisons | Comparison Tool