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No. of Recommendations: 6
rookiex: 'believe management should figure out an alternative to a dividend cut.'

Ordinary share dividends are merely one of the many options available to management for capital allocation. In fact, such dividends should be the last option, for when management has no better way to increase shareholder equity.

The starting premise for investing in any such shares has to be that dividends are not a given. If reliable dividend income is a major requirement, then you should be thinking instead of fixed income/ preference share options much higher up on the capital structure.

'I came away with the distinct impression these folks aren't particularly competent. '

This is arguably the most subjective element of any investment. Nevertheless, one of the important reasons why Exelon is highly rated is its management quality. Crane, for instance, had a solid track record as COO, and his predecessor, Rowe, was an industry institution. I admired his straight-shooting style of leadership!

I sincerely appreciate your predicament in having EXC in a retirement account. However, such plans are, by definition, long term investments. Are you so sure EXC is a long term writeoff?
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