Covered, compounding — a regulated payer. A 3.72% yield on a roughly 62% payout of operating-earnings guidance is covered for a regulated utility: $0.67 a quarter, raised from $0.63 in February 2026, extending 14 years of increases, backed by PSE&G's regulated New Jersey electric and gas business and a nuclear fleet. The payout is fuller than a low-payout payer's, but regulated cash flows and 6–8% operating-earnings growth guidance through 2030 support it.
Key risk: Rate-case and capital-program risk — a $24–$28 billion 2026–2030 capital program needs timely cost recovery through rates, so regulatory delays or storm costs squeeze the cash available for the dividend.
Changes if: The payout pushes past 75% of operating earnings, or 2026 operating-earnings guidance of $4.28–$4.40 is cut. Either would strain a payout that currently rests on regulated growth.
- ✓Payout-coverage check: About 62% of operating-earnings guidance — $2.68 indicated against the $4.34 midpoint of $4.28–$4.40 guidance — covered, though fuller than a low-payout payer's.
- ✓Yield check: 3.72% indicated — $0.67/qtr × 4 at the $72.02 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- ✓Dividend growth check: 14 years of increases; the latest raise lifted the quarterly dividend from $0.63 to $0.67 in February 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.