Here’s a summary of the analysis comparing Eversource and Exelon, specifically for income-focused investors:
Key Comparisons: Eversource vs. Exelon
Dividends
- Eversource offers a higher yield at 4.72% with a forward annual dividend of $3.15.
- Exelon yields 3.93% with a forward annual dividend of $1.68.
Performance and Earnings
- Exelon had an adjusted EPS of $0.91, surpassing the consensus estimate of $0.89.
- Eversource reported an EPS of $1.12, which fell short of the expected $1.14.
Financial Health
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Total Debt (as of June 30, 2026):
- Exelon: $52.28B
- Eversource: $29.81B
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Rate Base Targets:
- Exelon aims for $87.4B by 2029.
- Eversource targets $49.3B by 2030.
Cash Flow Analysis
- Exelon generated $1.72 billion in operating cash flow against $2.36 billion in capital expenditures.
- Eversource’s operating cash flow of $1.18 billion in 2025 was insufficient to cover its $1.34 billion in dividends.
Pending Regulatory Rulings
- Eversource is under scrutiny in Connecticut for $980 million in storm costs, which could impact its income narrative if regulatory decisions go against it.
Investment Outlook
- Eversource has consistently increased its dividend since 2015, appealing to income-focused investors, despite its stock price decline of 5.69% over five years.
- Exelon, while showing a higher total return of 46% over five years, has had more dividend fluctuations, with its dividend reduced recently.
Conclusion
For income-focused investors, Eversource stands out due to its stable dividend growth. However, potential regulatory risks and cash flow challenges warrant caution. In contrast, Exelon offers growth and stability, but with a cautious outlook on dividends.
Those approaching retirement may prioritize Eversource for steady income, but should keep an eye on developments regarding the Connecticut storm cost ruling, which could shift the investment landscape.
