What Con Edison actually does

Consolidated Edison delivers electricity, natural gas and steam to millions of customers in New York City and nearby areas, through Con Edison of New York and Orange & Rockland. It also has a smaller renewable energy business.

How the business makes money

It is a regulated utility. State regulators approve the rates it charges, which are set to cover costs and allow a fair return on the equipment it owns. The company invests billions in the grid and earns more as those investments are added to the rate base.

The dividend story

Con Edison is a Dividend King, with more than 50 years of annual increases. It pays quarterly. The raises are usually small, in line with a business that grows slowly, but they are very regular, which is why income investors like it.

What to keep an eye on

  • Rate decisions. Regulators decide how fast earnings can grow.
  • Weather and storms. Climate events raise costs.
  • Debt. Large investment needs are partly funded by borrowing.
  • Interest rates. Utilities lose appeal when safe bonds pay more.

Quick take

Con Edison is a steady regulated utility with one of the longest dividend records in the market. Growth is slow, income is reliable.