The institutional love this stock. If you can not take the ups and downs do not buy this stock. This stock is for long term investors who do not react to every piece of news. Dividend investors love this stock.
I guess you too missed the recent dividend announcement. $0.525 as before and nothing yet to signal a cut which could only come in 3 months so stop worrying.
I can't see any reasons yet why EXC shouldn't make/exceed their numbers Wednesday and maintain the dividend (5.334% at today's close of $39.37) next quarter too. Good earnings next week will obviously drive the payout ratio lower than 70% too.
Owning EXC with a divy cut would be like driving a car without a transmission.... doesn't work for yield hogs like myself. An announced change in the payout rate would send shares down to low 30's. You get a better payout with AT&T or Vodafone plus a business that is growing their revenue and customer base.
That said, I don't think EXC will cut. The company does a reasonably competent job in managing its operations with a 2.10 dividend baked into its cash flow. And yes, it would be nice if Yahoo would correct the misinformation it displays on the EXC page. WE ARE A 5.5% YIELD (fingers crossed)
Why all the hand wringing? Is anyone seriously thinking of selling shares BEFORE the earnings call???? Might as well throw darts if you're "investing" without doing homework or listening to the pure garbage (perhaps with an agenda) that often shows up here. Anyone willing to do minimal research (like listening to earnings calls - past and upcoming) should be able to filter out the noise and misinformation.
Agreed, if indeed the call says something different from the slides. That's why I would like I link to it if anyone has it.
If they DO decrease the dividend, do you guys think it would actually have a negative impact on the share price? If investors know it's a short-term adjustment due to a short-term decline in earnings, will it really affect it that adversely?
Its not like their confirmation of the current dividend actually affected the price at all.
Have you seen the current yield on a 10 year US treasury bond? It's currently trailing EXC by 400 basis points. Eventually yield starved cash will flood into stocks like EXC and it's easy to see these shares shares trading up to mid 40's by year end. Ignore the nonsense about nuclear energy safety and flat earnings. It's simply noise. Exelon's biggest problem is lack of good public relations. I rarely hear it mentioned on CNBC as a viable alternative to anemic fixed income returns. Check the current monthly return on your money market. I don't mind flying under the radar for now.