I am adding another 100 shares of ConED (NYSE:ED) to my retirement portfolio at $59 per share bringing my target allocation up to 75%. I’ve owned ED since 5/18/09 in my regular investment account. Since it pays such a high dividend yield, I am buying for my retirement account and selling out of my regular account.
This buy was timed in part to own prior to the Ex-dividend date of 5/14/12. ConEd’s dividend was increased by $0.02 per year raising the full-year run rate to $2.42 providing a current dividend yield of 4.1%.
During the past fiscal year, ED increased its bottom line by earning $3.57 versus $3.47 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus $3.57). Consolidated Edison expects its EPS from ongoing operations for fiscal 2012 in the range of $3.65 to $3.85.
Electricity Consumption Expected to Grow 30%
US household electricity consumption has increased 21% since the 1970s and the Edison Electric Institute estimates another 30% increase by 2030. Natural gas consumption is expected to rise to as much as 24 trillion cubic feet by 2016 from about 23 trillion cubic feet today.
The company was founded in 1884 and is based in New York, New York. Consolidated Edison, Inc., through its subsidiaries, provides electric, gas, and steam utility services in the United States. It provides electric service to approximately 3.3 million customers and gas service to approximately 1.1 million customers in New York City and Westchester County, as well as provides steam service to office buildings and apartment houses in parts of Manhattan.
The company also provides electric service to approximately 0.3 million customers in southeastern New York and in adjacent areas of northern New Jersey, and northeastern Pennsylvania; and gas service to approximately 0.1 million customers in southeastern New York and adjacent areas of northeastern Pennsylvania. In addition, Consolidated Edison involves in the sale and related hedging of electricity to wholesale and retail customers; operation of generating plants; participation in other infrastructure projects; and provision of energy-efficiency services, including the design and installation of lighting retrofits, high-efficiency heating, ventilating and air conditioning equipment, and other energy saving technologies to government and commercial customers. It serves residential, industrial, and large commercial customers.