Consolidated Edison Inc – Best Electric Utility Stocks To Buy Now
As oil and gas prices have been rising in the second half of 2021, there has been a lot of focus on businesses that deliver power. Even coal prices globally have jumped significantly. There have been news reports of blackouts in certain countries as economies grapple with coal shortages. All such news has put the focus on utility companies. The utility industry is a mature one where a few (or sometimes a single) names dominate their respective geographies. In the New York area, which is one of the largest metropolitan areas in the world, Consolidated Edison is the dominant player. If you are wondering what is the best electric utility stock, then taking a closer look at Edison makes a lot of sense.
Business Information About Consolidated Edison
Edison is one of the largest utility companies in the US. It primarily serves customers in the New York area through 5 subsidiaries. The company provides steam, electricity, and natural gas services to customers in south-eastern New York and some parts of New Jersey. The company also has substantial investments in renewable energy. It is, in fact, the second-largest owner of PV solar capacity in the US. The utility business has high barriers to entry, rising demand in areas like New York with population growth, and regulatory guidelines that allow companies to raise their rates to account for rising costs. Because utilities is a mature business and the growth rates are tied to either the population growth rate or the migration growth rate, the financials are relatively more predictable. There are no major moves in large utility companies. Such stocks also pay high dividends and are great for income-seeking investors. The best electric utility stocks to buy now are the ones that are transitioning towards cleaner sources of energy.
What Is The Best Electric Utility Stock
Consolidated Edison trades on the New York Stock Exchange under the ticker symbol ED. The stock has been paying out a dividend yield of over 4% in recent times. The P/E ratio of the stock in October was slightly higher than 22.