Yes - the downgrade was a gift to first-time buyers - if one wants a quick buck, this isn't the stock, but the analyst said, "dividend is safe" which for many of us is the holy grail these days of 1.43% on ten year bonds. . .also the dividend is qualified at 15%, so for those of us who are "Buffett" type investors, this is the place. . .as for California, don't bet on the parole release ballot proposal passing, Californians may be liberal about many things here, but always tough on crime!!
I went through this with Merck and the Vioxx litigation - it was a great time to buy and a great dividend yield there until the litigation worked itself out. . .note that Merck is still in business and paying a nice dividend. . .at least 10 of the companies I have owned have had this type of litigation - shareholders get about .02 cents if that!!!
At this price and with a 12% payout, and cash to cover the payout, AND the Con Ed connection, this looks VERY good - I hold Con Ed which is why this came up on my radar - I think a lot of other ED investors will be over here in the next few weeks. I am a long term investor - have held Con Ed for 15 years - they always increase their dividend.