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Exelon's (EXC) dividend cut is a bad sign for income investors, Paul Ausick writes, citing the...

Exelon's (EXC) dividend cut is a bad sign for income investors, Paul Ausick writes, citing the forces that led EXC's move which exert a similar power over other utilities: higher depreciation and amortization expenses due to added capital spending, and a variety of costs - warmer weather, low electricity demand, tighter emission regulations - over which they have little or no control.
Comments (12)
  • Tell us more, we would never have figured that out. Duh.
    7 Feb 2013, 09:26 PM Reply Like
  • Then,We all are really in some,...............
    7 Feb 2013, 10:57 PM Reply Like
  • what do they want to know???. who is clamoring for this knowledge????
    7 Feb 2013, 11:00 PM Reply Like
  • Who should we blame?
    7 Feb 2013, 11:11 PM Reply Like
  • Blame former chairman John Rowe with his 3 failed mergers and poor management decisions.He,s enjoying his golden parachute right now at everybody else expense.
    8 Feb 2013, 12:20 AM Reply Like
  • What we really want to know is does the dividend cut portend a higher future price!
    8 Feb 2013, 12:31 AM Reply Like
  • The mismanagement of EXC reminds us all that we must be
    Discriminating in picking high dividend and utility stocks!
    What are some of your favorite picks? Mike
    8 Feb 2013, 05:56 AM Reply Like
  • skokievally1,definitely good question.viability and stability,priceless.
    8 Feb 2013, 08:51 AM Reply Like
  • Not saying they are perfect but CNP, D, and DUK seem to be more stable and on the right track to maintain their dividend. 4,4,and 4.7% respectively is pretty good for that grouping and DUK price is up nicely in the last few weeks.Perhaps due to closing that nuclear plant. The market seemed to like that decision.
    8 Feb 2013, 08:29 AM Reply Like
  • cpl,ed,D,duk,nu,ppl,pe... history-ed is 120yrs net 30
    8 Feb 2013, 08:54 AM Reply Like
  • NGG is a good one as well! Mike
    8 Feb 2013, 01:09 PM Reply Like
  • The question before us is what will be the new dividend and
    Whether we should continue to hold this stock hoping to
    Recoup some of our losses? the market did not react
    Enthusiastically to the announcement! One reason for the
    Skepticism is EXC's theory that natural gas prices will
    Rise year after year! And that therefore they will make more money off of this.This is a pipe dream and there is no evidence
    This will occur! In fact it is more likely NG prices will remain
    Very low as the administration fights to restrict it's development.
    The only way EXC can win is if the US can pass a new
    Carbon tax? This is also unlikely. I think we EXC losers
    Should continue to discuss other utilities and whether
    We should look to MLP's and other high yielders such as
    REITS and Financials LLPs such as KFN.
    EXC's demise at the very least makes it clear that there is
    Nothing magic about utilities and might as the article suggest
    Cause them to underperform in the short run as investors
    Become overly suspicious about their returns! Mike
    9 Feb 2013, 09:03 AM Reply Like
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