Exelon Corp’s Dividend Yield Hits 4% Mark Amid Market Fluctuations
Understanding the Implications of Dividends in Investment Strategies
In Monday’s trading, shares of Exelon Corp (Symbol: EXC) exhibited a yield surpassing 4%, thanks to its quarterly dividend, which is annualized at $1.52. On the day, shares were seen trading as low as $37.87. For investors, dividends play a crucial role, as they have historically contributed significantly to overall stock market returns.
To put this in perspective, consider an investment in the S&P 500 ETF (SPY) made on December 31, 1999, at a price of $146.88 per share. Fast forward to December 31, 2012, and the share price had dipped to $142.41 — a loss of $4.67 over that time frame. However, during the same period, investors accumulated $25.98 in dividends per share. This resulted in a total positive return of 23.36%, despite the decrease in share value. When factoring in reinvested dividends, the average annual return was only about 1.6%. Thus, a sustainable yield exceeding 4% seems especially appealing in comparison.
As an S&P 500 company, Exelon Corp (Symbol: EXC) holds a notable position among large-cap companies within the S&P 500 Index. However, it’s essential to keep in mind that dividend amounts can be unpredictable, often tied closely to each company’s profit performance.
Examining the historical performance of Exelon Corp, as shown in the chart below, can provide insights into the likelihood of the latest dividend being maintained and whether a consistent 4% annual yield is a realistic expectation.
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Also see:
- VXXB Videos
- BIS Dividend History
- AWR Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
