Morningstar Rating

Stock Research and Analysis

by Mark Barnett

Bulls Say

Con Ed has raised its dividend each year for 40 years.
At our fair value estimate, Con Ed's dividend would yield 4.6%.
Con Ed's infrastructure investments should allow it to collect higher rates and increase its earnings faster than load growth beyond 2015. Load growth also drives the need for future investment in rate base. Read more 

Bears Say

Over the long term, New York's high cost of living puts significant pressure on a regulated utility to avoid large rate increases.
New York's intense political climate means that regulation is tougher than in many other jurisdictions.
Con Ed is subject to annual fines for nonperformance in excess of $400 million and doesn't have much protection from rising property taxes. Read more 

Management

Con Ed has managed to maintain constructive regulatory relationships in a tough environment and operate its system near the top of peer rankings despite the size and complexity of its system. The company's response to Hurricane Sandy, while limiting   Read more 

Profile

Consolidated Edison is a holding company for two regulated utilities, Con Ed of New York and Orange & Rockland. These utilities provide steam, natural gas, and electricity   Read more 

Clean-Air Regulation Has Silver Lining for Utilities Stocks 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.