New York city-based Consolidated Edison Inc. (ED) announced that its annual greenhouse gas emissions have dropped 35% since 2005. The company released its findings in a sustainability report meant to showcase its efforts to use more renewable energy sources and cut back on carbon emissions.
The company said sales of electricity from renewable sources rose 25% at its subsidiary Con Edison Solutions in 2010. Looking forward, Con Edison expects to further reduce its carbon output as it shifts to using more natural gas for electricity.
Consolidated Edison is a high dividend-yield defensive stock. As such, the stock recently witnessed mostly lateral movement over the past week falling 1.1%. Since the stock can be dubbed as a bond proxy, the momentum on the stock gathers in a falling interest rate situation.
Earlier, in the first quarter of 2011 earnings call, Consolidated Edison reaffirmed its earnings per share from its ongoing guidance range for fiscal 2011 to $3.45 – $3.65. The range reflects, among other things, stable financial performance at Con Edison of New York through cost control efforts and growing financial performance at its competitive energy businesses.
Going forward the issuance of common stock would beat down both earnings and dividend. The stock currently yields 4.6%, which is higher than its peers like Edison International (EIX) and PG&E Corporation (PCG) with yields of 3.3%, and 4.3%, respectively.
New York City-based Consolidated Edison is a diversified utility holding company with subsidiaries engaged in both regulated and unregulated businesses. Consolidated Edison’s regulated businesses operate through two subsidiaries — Consolidated Edison Company of New York (Con Edison of New York) and Orange and Rockland Utilities (O&R).
Con Edison of New York is a regulated utility that provides electricity to roughly 3.3 million customers, and natural gas to 1.1 million customers, primarily in New York City and Westchester County. O&R serves nearly 400,000 electric and gas customers in southeastern New York State, northern New Jersey and northeastern Pennsylvania.
Consolidated Edison’s unregulated businesses operate through three subsidiaries: Consolidated Edison Development (engaged in infrastructure development), Consolidated Edison Energy (energy wholesaler) and Consolidated Edison Solutions (energy retailer).
Consolidated Edison’s future growth will largely depend on rate increases of its utility subsidiaries. We are currently Neutral on the Zacks #4 Rank (Sell) stock.
CONSOL EDISON (ED): Free Stock Analysis Report
EDISON INTL (EIX): Free Stock Analysis Report
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