Covered, compounding. A 3.78% yield on a 61.79% trailing payout is covered, if fuller than a low-payout payer: $0.42 a quarter, raised from $0.40 at the start of 2026, backed by reaffirmed 2026 adjusted operating earnings guidance of $2.81 to $2.91 a share — a midpoint payout of about 59% on guidance earnings.
Key risk: Regulatory and build-out risk — a $41.7 billion four-year capital plan, mostly transmission, needs regulator approval and financing, and PJM capacity shortfalls are already straining the grid it serves.
Changes if: Adjusted operating earnings guidance is cut below the level that covers the $1.68 indicated dividend, or the payout pushes past roughly 70% on guidance earnings.
- !Payout-coverage check: 61.79% trailing payout — covered, but fuller than a low-payout payer; on the $2.86 midpoint of 2026 adjusted guidance the payout is about 59%, which is the cleaner coverage read.
- ✓Yield check: 3.78% indicated — $0.42/qtr × 4 at the $44.43 close on Oct. 23, 2026. Real, earned yield for a single stock, not a special or a return of capital.
- ✓Dividend growth check: Raised at the start of 2026, from $0.40 to $0.42 a quarter, 5% growth, with three years of increases counted on a trailing basis.
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.