Exelon Corp. Shares Cross 5% Yield Mark

Forbes

According to Dividend Channel, in trading on Thursday, shares of Exelon Corp. (EXC) were yielding above the 5% mark based on its quarterly dividend (annualized to $2.10), with the stock changing hands as low as $41.97 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1998 — you would have paid $123.31 per share. Fast forward to 12/31/2010 and each share was worth $125.75 on that date, a mere $2.44 or 2% increase over all those years. But now consider that you collected a whopping $20.53 per share in dividends over the same period, increasing your return to 18.6%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.4%; so by comparison collecting a yield above 5% would appear considerably attractive if that yield is sustainable. Exelon Corp. (EXC) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Exelon Corp., looking at the history chart for EXC below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.

EXC Dividend History
Date Div*
05/12/11 0.525
02/11/11 0.525
11/10/10 0.525
08/12/10 0.525
05/12/10 0.525
02/11/10 0.525
11/10/09 0.525
08/12/09 0.525
05/13/09 0.525
02/11/09 0.525
11/12/08 0.525
08/13/08 0.500
05/13/08 0.500
02/13/08 0.500
11/13/07 0.440
08/13/07 0.440
05/11/07 0.440
02/13/07 0.440
11/13/06 0.400
08/11/06 0.400
05/11/06 0.400
02/13/06 0.400
11/10/05 0.400
08/11/05 0.400
05/11/05 0.400
02/11/05 0.400
11/10/04 0.400
08/11/04 0.305
05/12/04 0.275
02/11/04 0.275
11/12/03 0.250
08/13/03 0.250
05/13/03 0.230
02/12/03 0.230
11/13/02 0.220
08/13/02 0.220
05/13/02 0.220
02/13/02 0.220
11/13/01 0.211
08/13/01 0.211
05/11/01 0.211
02/13/01 0.277
08/28/00 0.125
05/25/00 0.125
02/23/00 0.125
11/10/99 0.125
08/25/99 0.125
05/26/99 0.125
02/18/99 0.125
11/10/98 0.125
08/19/98 0.125
05/20/98 0.125
02/18/98 0.125
11/12/97 0.225
08/20/97 0.225
05/21/97 0.225
02/18/97 0.225
11/13/96 0.225
08/21/96 0.217
05/22/96 0.217
02/16/96 0.217
11/13/95 0.217
08/21/95 0.203
* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.

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EXC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, EXC makes up 12.66% of the Utilities HOLDRS ETF (UTH) which is trading lower by about 2.7% on the day Thursday.

See what other ETFs contain EXC »

See what other stocks are held by UTH »

EXC operates in the Electric Utilities sector, among companies like American Electric Power Company, Inc. (AEP) which is off about 2.1% today, and NextEra Energy Inc (NEE) trading lower by about 2.3%. Below is a three month price history chart comparing the stock performance of EXC, versus AEP and NEE.

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EXC,AEP,NEE Relative Performance Chart


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