Exelon (EXC) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Exelon (EXC) is headquartered in Chicago, and is in the Utilities sector. The stock has seen a price change of 13.18% since the start of the year. The energy company is currently shelling out a dividend of $0.4 per share, with a dividend yield of 3.76%. This compares to the Utility - Electric Power industry's yield of 3.27% and the S&P 500's yield of 1.62%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.60 is up 5.3% from last year. Exelon has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 0.01%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Exelon's payout ratio is 58%, which means it paid out 58% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for EXC for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.70 per share, representing a year-over-year earnings growth rate of 8%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that EXC is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exelon Corporation (EXC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Why TJX (TJX) Outpaced the Stock Market Today
In the latest close session, TJX (TJX) was up +1.02% at $123.38. The stock's performance was ahead of the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.52%. Shares of the parent of T.J. Maxx, Marshalls and other stores have depreciated by 3.88% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.37%, and the S&P 500's gain of 5.95%. Analysts and investors alike will be keeping a close eye on the performance of TJX in its upcoming earnings disclosure. In that report, analysts expect TJX to post earnings of $1 per share. This would mark year-over-year growth of 4.17%. Meanwhile, our latest consensus estimate is calling for revenue of $14.08 billion, up 4.55% from the prior-year quarter. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.46 per share and revenue of $58.81 billion, indicating changes of +4.69% and +4.35%, respectively, compared to the previous year. Investors might also notice recent changes to analyst estimates for TJX. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, TJX boasts a Zacks Rank of #3 (Hold). From a valuation perspective, TJX is currently exchanging hands at a Forward P/E ratio of 27.37. This indicates a premium in contrast to its industry's Forward P/E of 20.99. Meanwhile, TJX's PEG ratio is currently 2.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TJX's industry had an average PEG ratio of 2.81 as of yesterday's close. The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 159, this industry ranks in the bottom 36% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 hours ago
- Yahoo
Why e.l.f. Beauty (ELF) Outpaced the Stock Market Today
e.l.f. Beauty (ELF) closed at $126.33 in the latest trading session, marking a +1.15% move from the prior day. This move outpaced the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 1%, and the technology-centric Nasdaq increased by 0.52%. The stock of cosmetics company has risen by 11.67% in the past month, leading the Consumer Staples sector's loss of 1.61% and the S&P 500's gain of 5.95%. Investors will be eagerly watching for the performance of e.l.f. Beauty in its upcoming earnings disclosure. On that day, e.l.f. Beauty is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 22.73%. At the same time, our most recent consensus estimate is projecting a revenue of $350.96 million, reflecting a 8.16% rise from the equivalent quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.66 per share and a revenue of $1.65 billion, representing changes of +7.96% and +25.39%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates for e.l.f Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.74% higher. Right now, e.l.f. Beauty possesses a Zacks Rank of #3 (Hold). Looking at valuation, e.l.f. Beauty is presently trading at a Forward P/E ratio of 34.11. This valuation marks a premium compared to its industry average Forward P/E of 25.01. Also, we should mention that ELF has a PEG ratio of 2.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Cosmetics industry was having an average PEG ratio of 1.1. The Cosmetics industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 35% of over 250 industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Yahoo
Intrusion Inc. (INTZ) Stock Falls Amid Market Uptick: What Investors Need to Know
Intrusion Inc. (INTZ) closed the most recent trading day at $2.23, moving -5.51% from the previous trading session. This move lagged the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 1%, and the technology-centric Nasdaq increased by 0.52%. Heading into today, shares of the company had gained 74.82% over the past month, outpacing the Computer and Technology sector's gain of 9.55% and the S&P 500's gain of 5.95%. The investment community will be paying close attention to the earnings performance of Intrusion Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.09, reflecting a 83.02% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 million, up 23.29% from the prior-year quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.36 per share and a revenue of $7.65 million, signifying shifts of +77.91% and +32.56%, respectively, from the last year. It's also important for investors to be aware of any recent modifications to analyst estimates for Intrusion Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Intrusion Inc. is currently a Zacks Rank #3 (Hold). The Computer - Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 181, placing it within the bottom 27% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow INTZ in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intrusion Inc. (INTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
