Covered — at a fuller payout. A 4.67% yield on an 81.6% trailing payout is covered, but fuller than most House cards: $0.7875 a quarter, raised for 2026 from $0.7525, for a 26th year of increases counted on a trailing basis. The offset is guidance — against fiscal 2026 EPS guidance of $4.57–$4.72, the $3.15 indicated dividend is roughly 67–69%, so the question is whether guided earnings land, not whether the trailing ratio alone condemns it.
Key risk: Regulation and refunds — the FERC decision in March 2026 cutting New England transmission ROE from 10.57% to 9.57% already cost a $43.9 million first-quarter charge and exposes the company to potential refunds for past periods.
Changes if: Full-year earnings land below the $4.57–$4.72 guidance range, pushing the payout toward 100%, or further ROE or refund charges hit.
- !Payout-coverage check: 81.6% trailing — fuller than most House cards; on fiscal 2026 guidance of $4.57–$4.72 the $3.15 indicated dividend is roughly 67–69%, so landing the guidance is the tripwire.
- ✓Yield check: 4.67% indicated — $0.7875/qtr × 4 at the $67.46 close on Oct. 23, 2026. Real, earned yield for a regulated utility, not a special or a return of capital.
- ✓Dividend growth check: 26 years of increases counted on a trailing basis; the latest raise lifted the quarterly dividend from $0.7525 to $0.7875, paid Sep. 30, 2026.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.