After hinting at it late in 2012, Exelon (EXC +0.39%) 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.
Don't Fret This Clean Company's Dividend Cut
By Taylor Muckerman and Joel South – Feb 7, 2013 at 3:00PM
NASDAQ: EXC
Exelon

Market Cap
$47B
Today's Change
(0.39%) $0.18
Current Price
$46.38
Price as of November 4, 2025 at 4:00 PM ET
With one of the cleanest energy portfolios in the business, Exelon's dividend cut is great for the long term.
About the Author
Taylor Muckerman was lead energy & materials analyst for fool.com from 2012-2013. He is now Head of Retention for Motley Fool Canada.