Better Buy: FirstEnergy Corp. (FE) or Consolidated Edison, Inc. (ED)?

Atlantic Power Corp (NYSE:AT) sliced a whopping 66% off the top of its own distribution, dismantling its 10.2% dividend yield. However, share prices of Atlantic Power have fallen to the tune of 66% this year, ironically pushing the company’s annual estimated yield back up to an unbelievable 17.9%.

While FirstEnergy Corp. (NYSE:FE)’s share price and yield follow Atlantic Power Corp (NYSE:AT)’s pattern on a slower, less extreme scale, Consolidated Edison stock has slowly grown alongside its steady dividend.

The future
Looking ahead, Consolidated Edison, Inc. (NYSE:ED) stock is preparing for the future. The company plans to spend $2.4 billion in capital expenditures in 2013, a move that should create lasting improvements. Just last week, it announced a $100 million natural gas infrastructure investment to switch more New Yorkers off fuel oil heating. While $100 million is so small chunk of change, the decision will save Consolidated Edison stock and its customers unnecessary spending down the road.

And while FirstEnergy is making moves of its own, it’s currently focusing funds on paying off its burdensome debt load. The company highlighted debt as a top issue for 2013 and has already spent $1.5 billion to drop its competitive business’ overexpenditures.

FirstEnergy or Consolidated Edison Stock
For now, at least, FirstEnergy comes in second. Consolidated Edison, Inc. (NYSE:ED) has proved over the past five years that it has what it takes to slowly and steadily increase value for investors. With a sustainable dividend today and smart spending for tomorrow, Consolidated Edison stock is the better buy.

The article Better Buy: FirstEnergy or Consolidated Edison Stock? originally appeared on Fool.com and is written by Justin Loiseau.

Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool recommends Exelon.

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