When it comes to finding a solid dividend play, one of the first sectors I tend to turn to is the Utilities Sector (NYSE:XLU) and this is because a number of the names within that sector yield at least 4% and trade at-or-below 20x earnings. With that said, and of the utility-based companies I’ve recently screened, there is one particular US-based diversified utilities play, Consolidated Edison, that stands out, not only because it’s shares are currently yielding just under 4.5% while trading at just 13x earnings, but because of its recent performance and capital spending efforts that are aimed at minimizing the impact if and when another "Super-Storm" were to hit the New York Metro area.

Company Overview

Headquartered in New York, New York, Consolidated Edison is engaged in regulated electric, gas, and steam delivery businesses in the United States. The company, through its subsidiary, Consolidated Edison Company of New York, Inc., provides electric services to approximately 3.4 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, and parts of Queens and Westchester County; and steam to approximately 1,703 customers in parts of Manhattan.

Recent Trend Behavior Looks Fairly Positive

On Thursday September 25, shares of ED, which currently possess a market cap of $16.45 billion, a P/E ratio of 13, and a dividend yield of 4.49% ($2.52), settled at a price of $56.15/share. Based on a closing price of $56.15/share, shares of ED are trading 1.76% below their 20-day simple moving average, 1.29% below their 50-day simple moving average, and 1.31% above their 200-day simple moving average. Based on its most recent performance, these numbers indicate a slight short-term downtrend and somewhat of a considerable long-term uptrend for the stock, which translates into a slight selling mode for most near-term traders and a fairly attractive buying a mode for many long-term investors.

Strong Track Record of Enhancing Shareholder Value

When it comes to the utilities sector, one of our top priorities as income-driven investors is to make sure a company such as Consolidated Edison can maintain and sustain its annualized dividend its recent track record of increasing its payout in each of the last 40 years clearly solidifies that particular ability.

So where do I see its annualized dividend heading in 2015 and 2016? In keeping with its recent dividend behavior over the last 36 months, there’s a very good chance its board of directors could increase its 2015 annualized payout by at least $0.08-to-$0.10/share bringing its payout to a range of $2.60-to-$2.62/share and then follow suit by increasing its 2016 annualized payout by another $0.08-to-$0.10/share which would bring its annual payout to a range of $2.68-to-$2.72/share.

Con Edison Spending $1 Billion on Storm Hardening Measures

Although Consolidated Edison is one of the best dividend plays the utility sector has to offer, we have to consider the fact that the company’s operations were significantly hindered during Hurricane Sandy, and such downtime clearly impacted the stock’s performance during Q4 2012. In an effort to minimize its downtime and the impact on its share price, if and when another Super-Storm were to strike the New York Metro area, the company is strengthening its ability to perform in such crisis-related situations by spending $1 billion through 2016.

Conclusion

For those of you who may be considering a position in Con Edison, I strongly recommend keeping a close eye on the company's Storm Hardening efforts over the next 18-24 months as well as its long-term dividend growth, which has, without interruption, been increased in each of the last 40 years, since August of 1974.