Daily Stock Pick: Exelon Corporation

A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the third of five utilities sector stocks poised to join my Volio folio this week. One could be my forty-third pick for Volio!

That technology sector includes seven industries all geared to delivering water, gas, or electricity (or all three) to us. Utilities industries are: diversified; independent power producers; regulated electric, regulated gas; regulated water; renewable.

My subject today is another large-cap diversified utility outfit, this one named, Exelon Corporation. Its trading ticker symbol is EXC. This is my first ever report on Exelon Corporation.

Exelon serves more customers than any other U.S. utility, with 10 million power and gas customers at its six regulated utilities in Illinois, Pennsylvania, Maryland, New Jersey, Delaware, and Washington, D.C.

Exelon owns approximately 32 gigawatts of generation capacity throughout North America.

Further, the company offers corporate governance support services. It serves distribution utilities, municipalities, cooperatives, and financial institutions, as well as commercial, industrial, governmental, and residential customers.

The company was incorporated in 1999 and is headquartered in Chicago, Illinois.

I use three key data points to gauge dividend equities or funds like Brookfield Exelon Corporation:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money.

EXC Price

Exelon's price per share closed at $37.53 yesterday. A year ago their price was $50.16. Price fell $12.63 or about 25% last year.

Assuming Exelon's stock trades in the range of $24 to $48  this next year, its recent $37.53 price might rise by $4.47 to reach $42.00 by June 24, 2021.

EXC Dividends

EXC's most recent declared quarterly dividend was $0.3825 paid, June 10th. That $0.3825 Q dividend equates to $1.53 annually for an annual yield of 4.08% at yesterday's $37.53 share price.

EXC Gains?

Adding the $1.53 annual estimated dividend to my $4.47 optimistic estimate of Exelon Corporation price upside shows a $6.00 potential gross gain, per share, to be reduced by any costs to trade the shares.

If we put little over $1,000.00 today in Exelon Corporation we would buy 27 shares of EXC stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.37 per share.

Subtract that $0.37 brokerage cost from my estimated $6.00 gross gain per share results in a net gain of $5.63 X 27 shares = $152.01 for a 12.2% net gain on a $1,013.31 investment.

Exelon Corporation shows a possible 15.2% net gain including a 4.08% dividend yield. It could be more, it could be less.     

The above speculation is based on past performance and supposition. Only time and money invested will tell if Exelon Corporation is worth it.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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