Key Takeaways
- Consolidated Edison yields 3.1% and Entergy yields 2.4%, and both raised their dividends in 2026: Con Edison by 4.4% and Entergy by 6%.
- Both pay out about 60% of their normalized earnings, and analysts expect that share to dip slightly for both in fiscal 2026.
- Entergy’s dividend grew 5.5% a year from fiscal 2020 to fiscal 2025, against 2.1% at Con Edison, as data center demand lifts Entergy’s sales.
- Entergy carries more debt, while Con Edison has 52 straight years of dividend raises.
Consolidated Edison (ED) and Entergy (ETR) both gave shareholders a raise in 2026. Con Edison’s 4.4% increase marks what it calls its “52nd straight year of dividend increases.”
Then on Oct. 30, Entergy raised its quarterly dividend 6% to $0.68 a share. The two pay out a similar share of earnings, and both businesses are growing. So if you could hold only one for the next 20 years, which dividend deserves the money?
| Metric | Consolidated Edison (ED) | Entergy (ETR) |
|---|---|---|
| Dividend yield | 3.1% | 2.4% |
| Annual dividend | $3.55 | $2.72 |
| Dividend growth, fiscal 2020-2025 | 2.1% a year | 5.5% a year |
| Payout ratio of normalized EPS, fiscal 2025 | 60% | 62% |
| Payout ratio of normalized EPS, fiscal 2026 consensus | 58% | 59% |
| Net debt/EBITDA (LTM) | 4.37x | 5.11x |
| Interest coverage (LTM) | 3.02x | 2.08x |
Source: TIKR and StockAnalysis, at today’s prices.
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Con Edison keeps the raises coming
Con Edison earned $2.07 a share in the third quarter of 2026, up from $1.91 a year before. Electrification in New York is behind the growth: new building electric demand requests are up 20% to 25%, and its regulated investment base is growing at an 8.7% compound annual rate over five years.
Regulated utilities pay for that kind of building with new debt and stock, so both of these are judged on the share of normalized earnings they pay out. Con Edison paid out 60% in fiscal 2025, and consensus has a comfortable 58% for fiscal 2026. Its earnings have grown faster than its dividend:
That faster earnings growth took its payout ratio from 73% in fiscal 2020 to 60% in fiscal 2025, which leaves room for raises like this year’s.
The risk is regulatory. Con Edison faced fresh scrutiny over a decade-long billing error at a Queens customer and a criminal case over faked gas safety inspections that has reportedly cost it more than $60 million.
Entergy is riding the data center boom
Where Con Edison’s growth comes from electrification, Entergy’s comes from data centers and heavy industry. Its retail electricity sales rose 7.4% in the third quarter of 2026 from a year earlier, on higher sales to data center and primary metals customers, and adjusted EPS climbed to $1.98 from $1.53. On Nov. 2, it narrowed its 2026 guidance to $4.35-$4.45 a share. It also added about $1.5 billion to its 2027-2030 capital plan.
Entergy paid out 62% of its normalized earnings in fiscal 2025. Consensus has that share at 59% for fiscal 2026, as 17 analysts expect EPS of $4.40, inside the company’s guidance. Entergy kept raising its dividend through a rough fiscal 2019:
Normalized EPS fell to $2.70 from $3.65 that year, which pushed the payout ratio to 68%. It has eased to 62% since.
The catch is the debt. Entergy carries 5.11x net debt to EBITDA, a heavier load than Con Edison’s 4.37x, and its EBIT covers its interest a thinner 2.08x. CFO Kimberly Fontan said on the third-quarter call, “We’ve taken significant price risk off the table, and we have ample time to raise capital.”
So which dividend wins?
Entergy gets my dividend dollars for the next 20 years. Over two decades, a dividend can only grow as fast as the earnings behind it, and analysts expect Entergy’s earnings to keep climbing:
Consensus has normalized EPS rising from $3.91 in fiscal 2025 to $5.80 in fiscal 2028. Management expects strong sales growth to support a better-than-8% earnings trajectory beyond 2026. That gives Entergy room to keep its dividend growing near its five-year rate of 5.5%.
At that pace, $10,000 in Entergy pays $240 this year and about $660 in year 20, a 6.6% yield on the original $10,000. The same $10,000 in Con Edison pays $310 now and about $463 in year 20 at its 2.1% rate, a 4.6% yield. Entergy’s income passes Con Edison’s around 2034. Over the full 20 years, Entergy pays about $8,338, about $707 more than Con Edison’s $7,630.
That isn’t to say Con Edison’s dividend is in any danger. Fifty-two straight years of raises, lighter debt and a bigger check today make it a fine income stock. Over 20 years, though, I’d rather own the dividend with the faster-growing earnings behind it.
Of course, Con Edison’s 4.4% raise this year was more than double its five-year pace. If it keeps raising at that clip, Entergy’s lead in income shrinks a lot.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
