NEW YORK - Consolidated Edison, Inc. (NYSE: NYSE:ED), a leading energy-delivery company, has announced an increase in its quarterly dividend to 83 cents per share, marking the 50th consecutive year of dividend growth for the company. This increase, payable on March 15, 2024, to shareholders of record as of February 14, 2024, represents an 8-cent rise from the previous annualized dividend rate of $3.24 per share.
In alignment with its growth strategy, Con Edison has set a target dividend payout ratio between 55% and 65% of its adjusted earnings. This adjustment anticipates future capital investments and the funding requirements associated with them.
Con Edison, with annual revenues of approximately $16 billion and assets totaling $64 billion, operates through subsidiaries including Consolidated Edison Company of New York, Inc. (CECONY), which provides electric, gas, and steam services in New York, and Orange and Rockland Utilities, Inc. (O&R), serving areas in New York State and northern New Jersey. The company also has a transmission arm, Con Edison Transmission, Inc., focusing on electric and gas assets and the development of electric transmission projects.
This dividend increase announcement is based on a press release statement from Con Edison.
InvestingPro Insights
In light of Con Edison's recent dividend increase, a look at similar companies in the utility sector can provide valuable context. W.P. Carey Inc. (NYSE: WPC), a diversified real estate investment trust, stands out with its own impressive track record of dividend reliability. According to InvestingPro Tips, W.P. Carey has maintained dividend payments for 26 consecutive years, underscoring a commitment to shareholder returns that echoes Con Edison's own dividend growth strategy.
Moreover, W.P. Carey's financial metrics from InvestingPro reveal a robust financial position: a market capitalization of $14.24 billion, a notable gross profit margin of 92.39% for the last twelve months as of Q3 2023, and a revenue growth of 22.15% in the same period. These figures highlight the company's financial health and potential for sustained growth. Additionally, W.P. Carey's P/E ratio, at 17.93, combined with a PEG ratio of 0.42, points to a valuation that is potentially attractive relative to near-term earnings growth.
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