Southern, Con Edison Dividends Gain Roth IRA Edge at 3.4% and 3.26% Yields
Updated
Updated · 24/7 Wall St. · Sep 13
Southern, Con Edison Dividends Gain Roth IRA Edge at 3.4% and 3.26% Yields
2 articles · Updated · 24/7 Wall St. · Sep 13
Summary
Southern Company and Consolidated Edison look more attractive in Roth IRAs because their qualified dividends can be reinvested without annual federal tax, unlike in taxable accounts.
At current payouts, Southern yields 3.4% on a $2.98 annual dividend and Con Edison yields 3.26% on $3.475, with investors in the 15% or 20% qualified-dividend brackets losing that share of each payment in taxable accounts.
Southern has raised its quarterly dividend to $0.76 and posted Q2 2026 adjusted EPS of $1.13 versus a $1.00 estimate; Con Edison lifted its payout to $0.8875 in its 52nd straight year of increases.
Con Edison also reaffirmed 2026 adjusted EPS guidance of $6.00 to $6.20 and targets a roughly $67.2 billion rate base by 2030, underscoring the slow-growing income profile that benefits most from tax-free compounding.
The tax advantage is limited for investors in the 0% qualified-dividend bracket, and Roth contribution caps, income phaseouts and withdrawal rules can restrict how much of a utility portfolio can be sheltered.