One great thing about utility businesses is that they regularly pay out generous dividends. This sort of cash flow is great for income investors or people who want to park their money while still earning a regular income. Utility stocks tend to grow at very slow rates, almost tracking the population growth rate. Their revenue projections are relatively simpler to make as compared to other businesses because electricity rates are capped by local governments. The cost side is affected by commodity prices and how efficiently utility businesses can run their plants. Buying good-quality utility stocks can offer steady though unspectacular returns to investors. Another thing that investors should look for if they plan to buy electric utility stocks right now is whether the company is investing enough towards renewable energy and sustainability. Those trends are expected to become major themes in the energy domain if we talk about the future.
Q22021 Earnings Results Announced
Consolidated Edison released its second-quarter 2021 earnings numbers on 5th August 2021. Net income went down from $190 million in Q22020 to $165 million in Q22021. The adjusted net earnings came in at $182 million in Q22021 as compared with $201 million in Q22020. The company management commented that there were several adverse weather events that came to the fore during the quarter which affected its business. The management also revealed that Consolidated Edison had received approval for making the largest battery system in New York state. Such a system would facilitate the charging of electric vehicles. Consolidated Edison continues to grow its business in the field of renewable energy. If you are looking to buy electric utility dividend stocks now 2021, then it makes sense to have a look at Consolidated Edison.
Consolidated Edison’s stock has been on an uptrend in October 2021. The stock has gained close to 5% in less than a month. The stock last traded at around $76 on 22nd October 2021. The dividend yield at the time was 4.07%.