Con Edison dividend: cash coverage
Con Edison pays an annualized dividend of $3.55 per share, following the latest quarterly payment of $0.8875. Its dividend uses about 58% of adjusted earnings, but free cash flow remains negative after capital spending.
How much does Con Edison pay per share?
The dividend starts from an annualized $3.55, following the latest quarterly payment of $0.8875. The base case assumes modest January increases, taking DPS to $3.6625, $3.8125 and $3.9625 across the forecast dates. That reflects the long record of annual increases, but keeps dividend growth below EPS growth because capital spending and negative free cash flow remain heavy. The bear case holds DPS at $3.55 as funding pressure forces a pause. The bull case reaches $3.70, $3.90 and $4.10 as earnings and cash generation improve.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 5.64 | 5.24 | |||
| Free cash flow per share | -1.24 | -4.70 | -7.40 | -2.06 | -3.99 |
| − Dividends paid, per share | 3.25 | 3.17 | 3.14 | 3.06 | 2.95 |
| = Paid out more than FCF, per share | 4.49 | 7.86 |
Does Con Edison's cash cover its dividend?
In 2025, operating cash flow reached $4,800 million, compared with net income of $2,023 million. Depreciation explains part of the difference: it reduces accounting profit without requiring a new cash payment that year. But after $5,245 million of capital spending, free cash flow was negative $445 million. That pattern appeared throughout the five years shown.
The dividend looks more comfortable against accounting earnings than against cash. Free cash flow is the cash left after investment, and Con Edison reported $2.47 billion of utility capital expenditures in the first half of 2026. Contractors must be paid today, even when depreciation and customer recovery occur over decades. That explains how the dividend can consume about 58% of adjusted earnings while free cash flow remains negative. The tension between earnings and cash leads to the company’s history.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | -445 | -1,631 | -2,584 | -732 | -1,395 |
| − Dividends paid | 1,166 | 1,100 | 1,096 | 1,089 | 1,030 |
| − Share buybacks | 0 | 0 | 1,000 | 0 | 0 |
| = Paid out more than the free cash flow | 1,611 | 2,731 | |||
| Paid to shareholders | 1,166 | 1,100 | 2,096 | 1,089 | 1,030 |
What this means. The company paid dividends even though it generated negative free cash flow, so it had to use cash it already held and money from new shares or borrowing.
What could change Con Edison's dividend?
Funding evidence would also matter. Higher interest expense, larger equity issuance or continued negative free cash flow would reduce per-share growth and weaken the multiple [scenario B3]. Conversely, delivery against the 6%–7% EPS target, completion of the approved investment programme and constructive recovery decisions would support the base case [scenario A1][scenario A2].
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,393 (2,313 / 2,426) | 2,600 (2,429 / 2,672) | 2,825 (2,551 / 2,943) |
| Shares (millions) | 381 (381 / 380) | 389 (394 / 387) | 397 (407 / 392) |
| Dividends per share | 3.66 (3.55 / 3.70) | 3.81 (3.55 / 3.90) | 3.96 (3.55 / 4.10) |
| Price to earnings | 17.30 (15.00 / 18.50) | 17.30 (14.50 / 19.00) | 17.30 (14.00 / 19.50) |
What this means. The numbers in parentheses show lower and higher possible outcomes around the main forecast.
What is Con Edison's dividend yield against its price?
Revenue rose in 2025, but operating margin remained below 2023’s level. The company’s own free cash flow stayed negative in 2024 and 2025; diluted EPS reached $5.64 in 2025 while free cash flow per share remained -$1.24. The 3.2% dividend yield sits beside negative free-cash-flow yields. Shares trade at 18.4x trailing earnings and 17.3x forward earnings.