Industry: Electric utilities
Market Capitalization: $25.6 billion
Total Return Since 3/9/2009: -13%
Like FirstEnergy, Exelon (EXC) has been pinched by falling energy demand and volatile commodity prices since the Great Recession.
Many investors consider utilities low risk, and while it’s true that they can be more stable it is also clear that picks like Exelon have lacked any pop in a decidedly “risk-on” environment. Even the decent dividends haven’t been enough to push total returns into the black since March 9, 2009.
Speaking of dividends, Exelon actually slashed its payout 41% from 52.5 cents to 31 cents quarterly last year on weak earnings and a sharp rise in operating costs.
Utility stocks clearly have little growth potential, and have little to offer beyond the dividend. And when a stock like EXC cuts that dividend … look out below.