Consolidated Edison, Inc. (ED): This Utility’s Dividend Growth Is Accelerating, but Can It Last?

ConEd’s flattish stair-step dividend history got a little steeper from the company’s full-penny increase, but dividend growth of 1.7% nevertheless remains sluggish and reflects the uncertainty in the industry. Combined with rising interest rates that will eventually increase debt financing costs, ConEd will once again have to demonstrate its ability to get through tough times.

When will Consolidated Edison boost its payout?

With ConEd having raised its dividend in February, it’s unlikely that investors will see another increase before 2014. It’s more important for investors to keep their eyes open to make sure they’ll get that increase, so be on the lookout during quarterly earnings reports at any strategic moves that could use cash flow that would otherwise be destined for dividend payments. Those could be your only early warnings of a potential dividend cut, even though the utility will likely take all steps possible to prevent losing its hard-won Dividend Aristocrat status.

The article This Utility’s Dividend Growth Is Accelerating, but Can It Last? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Exelon.

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