Constellation Energy Corp (CEG) — payout ratio, three ways
Fiscal year ending 2025-12-31 · sector Utilities · payout ratios computed from SEC filings, not taken from a data vendor.
| Basis | Payout | Why it differs |
|---|---|---|
| GAAP earnings | 5.2% | The basis that applies. A regulated utility earns an allowed return on its rate base, and the dividend is set against that. |
| Operating cash flow | 11.5% | Worse than the earnings figure, not better: operating cash flow absorbs working capital — inventory, receivables, payables — that earnings do not. |
| Free cash flow | 37.7% | What is left after the capital programme. For a regulated utility that programme is growth into the rate base, recovered through rates and funded by debt and equity issuance by design — so this figure swings with the capex cycle and frequently goes negative. It says little about whether the dividend is affordable. |
Spread between highest and lowest: 32 percentage points. Same filings, different denominators.
Coverage rating 79 / 100 — Adequate. ? Peer standing 49/50Direction 18/30Stability 12/20
GAAP earnings payout, last 3 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 5.2% |
| 2024-12-31 | 3.0% |
| 2023-12-31 | 5.6% |
Coverage worsened sharply this year, 3.0% to 5.2%, after no clear trend before it. One year is not a trend, but it is worth knowing which direction the last one moved.
Among the 57 utilities companies here, 98% pay out a larger share on this basis — this is comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.39 ÷ diluted EPS $7.40
- Operating cash flow — dividends paid $486.0m ÷ operating cash flow $4,237.0m
- Free cash flow — dividends paid $486.0m ÷ (operating cash flow $4,237.0m − capex $2,949.0m)
Where the figures came from
- 10-K filed 2026-02-24 · accession
0001868275-26-000032
Every one is public at sec.gov and free to check. That is the point — you should not have to take my word for any of it.
Caveats on this company
- DPS $0.39 filed as declared, but dividends paid imply $1.55 — one of the two underlying facts is wrong. The filed per-share figure is used.
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell me — that is more useful to me than agreement.