Should You Buy Consolidated Edison Stock Before Feb. 19?

Those eyeing an investment in Consolidated Edison (NYSE: ED) should mark Feb. 19th on their calendar. That's when the electric utility will report its fourth-quarter and full-year financial results. It's also the day after the record date for the company's next dividend payment, meaning investors must own shares before that date to receive the upcoming payment.

Here's a look at whether it would make sense to buy the electric utility stock before Feb. 19.

A look at what to expect when Consolidated reports earnings

Consolidated Edison, which focuses on providing electricity and natural gas services to customers in the New York City metro area, last reported earnings in early November. The company posted adjusted earnings of $1.90 per share, which was up from $1.68 per share in the year-ago period. The utility also narrowed and revised its full-year guidance to the upper half of its original range.

Despite the strong result and upwardly revised guidance, shares of the electric utility barely budged right after it reported earnings. However, they have rallied more than 17% over the past few months. That's due to falling interest rates (utilities are highly rate-sensitive) and the growing expectation that AI will drive a surge in electricity demand in the coming years, fueling accelerated growth for utilities.

Consolidated Edison has now generated $4.82 per share of adjusted earnings through the third quarter. With it revising its guidance range to $5.60 to $5.70 per share, it implies the utility will report between $0.78 and $0.88 per share of adjusted earnings in the fourth quarter. As long as its results don't fall short of the low end, the stock probably won't move much after earnings.

The dividend date to remember

In addition to reporting earnings this week, Consolidated Edison's dividend record date is rapidly approaching. The company declared its latest dividend on Jan. 27, payable on March 16. However, investors need to own the utility stock by the market close on Feb. 18 to receive this dividend payment.

The upcoming dividend is noteworthy. Consolidated Edison just raised its payment to $0.8875 per share ($3.40 annualized), a 4.6% increase from the previous level. That extended the company's growth streak to 52 years in a row, maintaining its place on the Dividend Kings list as a company with 50 or more years of consecutive dividend increases. At its new rate, the utility yields 3.1%, more than double the S&P 500's level (1.2%)

Buy now for the next dividend

Consolidated Edison is reporting earnings this week, which likely won't move the stock much if history is a guide. However, this week is also the record date for the company's next dividend payment. If receiving that payment is important to you, then you'll need to buy shares before Feb. 19. Otherwise, you might want to wait until after earnings to buy shares to see if they cool off a bit following the recent surge.

Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.