20 Worst Dividend Aristocrat Stocks According to Analysts

6. Consolidated Edison, Inc. (NYSE:ED)

Average Analyst Rating Score: 4

An American energy company, Consolidated Edison, Inc. (NYSE:ED) ranks sixth on our list of the worst dividend aristocrat stocks according to analysts. While utilities may not exhibit high growth potential compared to other sectors like technology or healthcare, they are valued for their stability, dividends, and predictable cash flows. Consolidated Edison, Inc. (NYSE:ED)’s revised dividend payout strategy aims to allocate 55% to 65% of its adjusted earnings toward dividends. This adjustment reflects a shift toward retaining more earnings internally to fund investments in clean energy initiatives and other growth opportunities. While this strategy is intended to accelerate earnings per share growth in the future, uncertainties surrounding regulatory challenges could pose risks to the company’s financial position.

In terms of dividend sustainability, Consolidated Edison, Inc. (NYSE:ED) supports a dividend yield of 3.65%, as of June 13 and has raised its payouts for 50 consecutive years. However, investors should not expect dividend hikes of 15-20%. Instead, its dividend growth is expected to be gradual and steady. Over the past decade, the company has raised its dividends at an annual average rate of 2.8%, which is modest compared to the sector average of 5.21%, and has not fully kept pace with inflation. In the past five years, its average annual dividend growth came in at 2.41%. It currently pays a quarterly dividend of $0.83 per share.

The number of hedge funds tracked by Insider Monkey owning stakes in Consolidated Edison, Inc. (NYSE:ED) grew to 35 in Q1 2024, from 28 in the previous quarter. These stakes are worth nearly $445 million in total.