Why Exelon Corporation (EXC) Is Gaining In 2025

We recently published an article titled Why These Dividend Stocks are Gaining in 2025? In this article, we are going to take a look at where Exelon Corporation (NASDAQ:EXC) stands against the other dividend stocks.

Stable income, offered by the dividend stocks, has historically attracted investors looking for consistent passive income, resulting in these stocks forming a significant portion of investment portfolios. We are at the beginning of 2025, and these divided stocks are recording notable changes, potentially affecting investment decisions in 2025. While these changes are negatively reflected in some stocks, we see an upward trend that offers an investment opportunity for dividend-seeking investors in others. We have compiled a list of dividend-payers gaining in 2025, which may also be part of your investment portfolio. Stick with us as we count these top gainers from 10 to 1.

Remember that it is not always about the stock’s trajectory but also the reasons behind it. Hence, as we count down the dividend stocks gained in 2025, we will also examine the factors contributing to their upward trend. The two most common contributors to changes in the dividend stock market are the convergence of global events and market trends.

ALSO READ: 10 Low PE High Dividend Stocks to Buy Now

Trump’s presidency, for instance, is shaking up economic policies, leading to specific industries and companies performing better while others face mounting pressures. The new tariff rates—25% on all products coming into the US from Mexico and Canada and 60% on Chinese imports—proposed by the current President, Donald Trump, send ripples across the commercial world, reaching beyond the US borders.

The Artificial Intelligence (AI) conflict between the US and China also affects the environment for dividend stocks. The newly launched AI model from China is competing with the existing model in the US in terms of performance and costs. These developments are altering stock prices. They reshape the expectations for dividend yields across sectors like technology, energy, and consumer goods. Investors are keeping a close eye on how companies are adapting to these changes. Some respond through innovative strategies and product offerings, while others struggle to transition to changing market conditions. It may inevitably be affecting the sustainability or growth of their dividend payouts.

For an investor, making an informed decision is better than unthinkingly following the market trend. Understanding the catalysts behind these trends, whether a geopolitical shift or changes in macroeconomic factors like interest rates or sector-specific challenges, will help make such informed decisions. The stocks we will be seeing in this article have managed to position themselves so that they would gain the most out of the changing market environment.

Each stock will share its unique story in our countdown, providing investors with insights that could later be used to optimize their portfolios. So, grab your coffee and get comfortable as we count down from 10 to 1 of the dividend-paying stocks that are gaining in 2025. Let’s dive in!

Our Methodology:

We took into account while forming the below list, the year-to-date (YTD) returns generated by the companies till February 16, 2025. Our list includes only those stocks that have met the criteria of a minimum dividend yield of 3%. Investors focused on income would find these companies particularly attractive. We also eliminated from our list, companies with a market capitalization of less than $50 million. It helped in putting together the list of large dividend-paying stocks, that could be significant gainers in 2025. The stocks are ranked according to their dividend yields, as of February 16.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Is Exelon Corp. (EXC) the Best Infrastructure Stock to Buy According to Hedge Funds?

A vast array of wind turbines on a hillside, showcasing the company’s takeover of renewable energy.

Exelon Corporation (NASDAQ:EXC)

Dividend yield: 3.73%

Dividend payout ratio: 62.04%

Ex-Dividend Date: February 24, 2025

Number of Hedge Funds: 35

As of February 16, 2025, Exelon Corporation (NASDAQ:EXC) saw a positive growth of 13.84% YTD, overperforming the benchmark indexes.

The four-year capital investment plan of the Chicago-based electric utility company saw an increase of $38 billion to cover the new transmission lines that would boost its overall growth in the industry. The industry is presented with a growth opportunity caused by the lack and aging of the existing power lines, pushing the electricity demand up in the market. After considering the required funding, several rate cases proposed by the company were approved by regulators and implemented earlier this year. As a result, Exelon Corporation (NASDAQ:EXC) is expecting adjusted operating earnings between $2.64 and $2.74 per share. This varies, but only slightly, from analysts’ average estimate of 2.63 per share, according to data compiled by LSEG.

Exelon Corporation (NASDAQ:EXC) offers a dividend yield of 3.73%. The 62.04% payout ratio indicates a balance between earnings used for dividend payment and earnings retained for reinvesting. As of the third quarter of 2025, 35 hedge funds tracked by Inside Monkey held on to the company’s stocks, indicating investors’ solid interest in the stocks.

Investors seeking stable income may purchase the stock on or before the ex-dividend date of February 24, 2025.

Overall EXC ranks 10th on our list of the dividend stocks that are gaining in 2025. While we acknowledge the potential for EXC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EXC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.