After hinting at it late in 2012, Exelon (EXC -0.05%) finally announced its decision to cut its industry-leading dividend rate. Starting in the second quarter of 2013, investors will receive $0.31 per share rather than the current $0.525 per share. While this might seem a bit steep, investors must consider management's reasoning behind the cut before jumping to rash conclusions. In this case, Motley Fool energy analyst Taylor Muckerman believes it puts Exelon in a much more sustainable position to grow competitively compared to its peers. Foolish investors should check out the video below for his take on why this could be a great long-term investment.
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Don't Fret This Clean Company's Dividend Cut
NASDAQ: EXC
Exelon

With one of the cleanest energy portfolios in the business, Exelon's dividend cut is great for the long term.
Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Exelon and Southern Company. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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