Does Exelon Corporation (EXC) Pass Buffett’s Test?

However, significant declines in natural gas prices later allowed these rivals to lower production costs to make up for the expenses associated with these conversions, which undermined Exelon Corporation (NYSE:EXC)’s competitive advantage. Increased demand related to lower natural gas prices has also helped Dominion Resources, Inc. (NYSE:D) as it delivers natural gas to individual consumers through its utility business and transports and stores natural gas through its pipelines and storage systems.

Businesses with consistently high ROIC show that they’re efficiently using capital. They also have the ability to treat shareholders well, because they can then use their extra cash to pay out dividends to us, buy back shares, or further invest in their franchise. And healthy and growing dividends are something that Warren Buffett has long loved.

The article Does Exelon Pass Buffett’s Test? originally appeared on Fool.com and is written by Jim Royal.

Jim Royal owns shares of Southern and Exelon. The Motley Fool recommends Dominion Resources, Exelon, and Southern.

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