Exelon Corporation (EXC): What Has Been Going On?

The Southern Company (NYSE:SO) has not shown explosive price appreciation like Duke Energy Corp (NYSE:DUK); however, the company has been able to grow its revenue consistently, albeit in the low single digits. The company has massive-scale operations and enjoys substantial diversification in its operations.

Furthermore, the company is one of the best dividend payers in the market; it recently increased its annual dividend to $2.03 per share, yielding 4.30%. Southern has decreased its dependence on coal, and the company is investing towards clean energy sources in order to further diversify its portfolio.

Conclusion

Utility companies have considerable control over pricing and have strong position in the respective markets. Recent unfavorable commodity price movement is not expected to last, and the diversification efforts of the company should provide it considerable cover against the business risk. Considerable control over pricing and favorable movement in commodity prices should allow the company to continue with the current dividend rate.

The two companies mentioned above are yielding more than Exelon Corporation (NYSE:EXC); however, I believe those two have less price appreciation potential than Exelon does. As a result of its fall in price, Exelon’s stock is still trading substantially below the previous high, and offers substantial upside potential, in my opinion.

The article Should You Buy Exelon? originally appeared on Fool.com and is written by Ishtiaq Ahmed.

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