Dividend Reliability vs. Expansion Plans: How Eversource Energy and Exelon Diverge on Income Growth
Eversource yields more and has raised its dividend every year since 2015, but its cash flow tells a different story, and a pending Connecticut storm cost ruling could flip the entire income argument.
Exelon (NASDAQ:EXC | EXC Price Prediction) and Eversource Energy (NYSE:ES) are regulated utilities with no renewables growth story. Exelon seeks data-center transmission load in the Mid-Atlantic and Midwest. Eversource left offshore wind and is selling its water business to focus on New England.
Eversource Pays More While Exelon Builds Faster
Eversource yields 4.72% at $65.69, compared with 3.93% for Exelon at $41.73. Both raised dividends in 2026: Exelon to $0.42 from $0.40, and Eversource to $0.7875 from $0.7525.
Exelon’s adjusted operating EPS of $0.91 exceeded the $0.89 consensus. CEO Calvin Butler said Exelon is “on track for another year of consistent operational and financial performance.” Eversource’s fourth-quarter EPS of $1.12 missed the $1.14 estimate. CEO Joe Nolan said he was excited about its future “as a pure-play regulated utility company with solid growth opportunities.”
| Income Lens | Exelon | Eversource |
|---|---|---|
| Forward Annual Dividend | $1.68 | $3.15 |
| Forward P/E | 14 | 13 |
| Total Debt (June 30, 2026) | $52.28B | $29.81B |
| Rate Base Target | $87.4B by 2029 | $49.3B by 2030 |
Free Cash Flow Is Where Retirees Should Look Hard
Exelon generated $1.72 billion of operating cash flow in Q1 against $2.36 billion of capex. It plans $3.4 billion of new equity through 2029 with a target of about 60% of earnings paid out.
Eversource has less room. Its 2025 operating cash flow of $1.18 billion fell short of the $1.34 billion it paid in common dividends. The June quarter was better: $1.09 billion of operating cash against $1.01 billion of capex and $292 million in dividends.
Connecticut’s Storm Cost Ruling Could Reset the Scorecard
Exelon faces S&P downgrades on BGE and Moody’s review of PECO. Eversource, concentrated in New England, faces $980 million of storm costs under prudency review in Connecticut. Morningstar noted constructive regulatory progress there this week. Watch that ruling and how much of Exelon’s about 18 GW data-center pipeline gets secured beyond the current 45%.
Why I Side With Eversource for Retirement Income
For an income reader near retirement, Eversource is worth consideration. Its quarterly dividend has risen every year since 2015, from $0.4175 to $0.7875. Exelon’s record shows a reduction from $0.3825 in 2021 to $0.3375 in 2022. Exelon has done more for total-return holders. Its stock is up 46% over five years, while Eversource is down 5.69%. If Connecticut rejects a large share of those storm costs, the income case shifts toward Exelon and its broader multi-state footprint.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
