EXC: Well-diversified and becoming more stable to drive growth
As the nation moves increasingly toward clean energy, one company in this space that is perfectly positioned to capitalize on having the largest nuclear fleet in North America is Exelon. This strength combined with an increased focus on renewable energy, along with its recent merger with Constellation, puts Exelon and its best-in-class dividend on a short list of top utilities. To determine if Exelon is a good long-term fit for your portfolio, you're invited to check out The Motley Fool's premium research report on the company. Simply click here now for instant access.
After hinting at it late in 2012, Exelon finally announced its decision to cut its industry-leading dividend rate. Starting in the second quarter of 2013, investors will receive $0.31 per share rather than the current $0.525 per share. While this might seem a bit steep, investors must consider management's reasoning behind the cut before jumping to rash conclusions. In this case, Motley Fool energy analyst Taylor Muckerman believes it puts Exelon in a much more sustainable position to grow competitively compared to its peers. Foolish investors should check out the video below for his take on why this could be a great long-term investment.
The article Don't Fret This Clean Company's Dividend Cut originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Exelon and Southern Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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