The utility’s 4.4% dividend increase maintains its Dividend King status but faces dilution risks from a $6.6 billion capex plan.
Consolidated Edison (ED) raised its dividend by 4.4%, marking 52 consecutive years of increases. The move reflects a conservative 58% forward payout ratio, supported by $4.8 billion in operating cash flow in 2025.
The company paid $1.166 billion in dividends against $5.93 trailing EPS, covering the $3.55 payout. However, a $4.764 billion capex outlay in 2025 left free cash flow flat, requiring $1.1 billion in new equity amid elevated interest rates.
Moody’s negative outlook highlights risks from the $6.6 billion capital expenditure plan, which could pressure shareholder returns if financing costs remain high.