Consolidated Edison (NYSE:ED) — This holding company for a number of energy businesses in the electric and gas delivery space sells to wholesale and retail customers in the greater New York City area and Westchester County, New York.
Yesterday, Citigroup (NYSE:C) analysts said that electric utility dividends are compelling versus bonds and cited several companies, including ED, that it highlighted as lower-risk investments. ED pays an annual dividend of $2.40 (4.4% yield) and has a history of regular dividend increases.
Technically ED broke from a four-month consolidation following a dramatic reversal on Aug. 9 from under its 200-day moving average. This triggered a buy signal from our proprietary indicator, the Collins-Bollinger Reversal (CBR), providing a target of $56 for the stock. Note the long-term bull market in ED and buy it as a steady performer and income provider in an uncertain time.
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