Why Consolidated Edison, Inc. (ED) Dividends Are Here to Stay

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2. Maximizing margins
Margins tell investors how much wiggle room a corporation has with its wealth, and Con Ed is making the most of its margins. At 36.2%, its gross margin is higher than 71% of its competitors, while its 18.8% operating margin is also above average. With sales up 16% in the last year, Con Ed is keeping a significant portion of its sales.

3. Regulation elation
Consolidated Edison, Inc. (NYSE:ED) stock is primarily pushed and pulled by its regulated earnings. Almost 95% of its $3.88 2012 EPS came from its regulated utilities, with just under 90% from Con Edison of New York (CECONY) alone. Looking ahead, the subsidiary expects a 1.3% annualized growth rate in electricity use over the next five years, with 4.3% growth in natural gas use. Regulated earnings are slow and steady, the exact kind of financial drip feed that dividend distributors love.

Can Consolidated Edison Stock cut it?
Con Ed’s recent stock dip is more a factor of macro moves than any company-specific signs of trouble. With solid fundamentals and a sustainable dividend, Consolidated Edison, Inc. (NYSE:ED) stock is a solid investment option for any income investor.

The article 3 Reasons Consolidated Edison Stock Dividends Are Here to Stay originally appeared on Fool.com.

Fool contributor Justin Loiseau has no position in any stocks mentionedbut he does use electricity. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.The Motley Fool recommends Exelon Corporation (NYSE:EXC).

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