Often, a sector’s most recognizable stock isn’t its best performer.

That’s certainly true of Consolidated Edison, Inc. ($ED), one of the most widely known utility stocks in the market. When mainstream financial media discusses the utility sector, Consolidated Edison is their go-to example. Wall Street also likes to market the company as a safe, income-producing investment.

Consolidated Edison is a regulated electric and gas utility providing energy and heat to more than 3.6 million customers. It’s an essential service provider with an impressive dividend track record, having paid dividends continuously for more than 100 years.

But while Consolidated Edison is a high-quality company, it’s also a slow-growth market laggard.

Over the past 30 years, Consolidated Edison has delivered an average annual total return of 8.93%. Over that same period, the SPDR S&P 500 ETF Trust ($SPY) produced an average annual total return of 10.14%.

Consolidated Edison is a Dividend King, raising its payout for 54 consecutive years.

However, this growth is modest.

The company’s 5-year compound annual dividend growth rate sits at just 2.13%, failing to keep pace with inflation.

Critics of dividend investing often point to companies like Consolidated Edison as “boomer stocks,” slow-growing, defensive investments that underperform the broader market. While they aren’t wrong, stocks like this can still have a place in most portfolios.

Personally, I’m not interested in buying Consolidated Edison stock. That said, here’s why it could still make sense as a long-term, buy-and-hold investment.

First, the stock has delivered steady long-term returns.
Despite underperforming the market, Consolidated Edison has consistently appreciated in value. A $10,000 investment made in January 1996 would now be worth approximately $131,216. Sometimes boring and safe is good. Yahoo! is a good reminder of this: its shares surged 270% on IPO day in 1996, yet the company was acquired by Verizon in 2017 for less than half of its original IPO price.

Second, the dividend is well protected.
Consolidated Edison targets a dividend payout ratio between 55% and 65% of adjusted earnings. The current payout ratio stands at 58.18%, meaning there’s a margin of safety as well as room for future dividend growth.

Third, the stock offers a decent starting yield.
With a forward dividend yield of 3.37% and a conservative payout ratio, Consolidated Edison could serve as a dependable income producer for long-term investors. At a price-to-earnings ratio of 18.70, the stock is also cheaper than other popular dividend stalwarts like Procter & Gamble and Coca-Cola.

Would I buy Consolidated Edison stock? No.

Within the utility sector, there are better alternatives. Black Hills Corporation ($BKH) offers a higher starting yield, faster dividend growth, and is also a Dividend King with 54 consecutive years of dividend increases. New Jersey Resources Corporation ($NJR) combines a higher yield with stronger dividend growth. And American States Water Company ($AWR) has a significantly higher 5-year compound annual dividend growth rate of 8.66% while also delivering a 30-year average annual total return of 11.30%.

Still, Consolidated Edison doesn’t deserve the hate it often receives. According to the Rule of 72, an 8.93% annual return would double an investor’s capital roughly every eight years.

Consolidated Edison is also a true “no-hype” stock. It isn’t dependent on speculative growth narratives, or vulnerable to emerging new technologies. Nobody who owns this stock is staying up until 3 AM to check overnight price movements.

While it isn’t my ideal choice, Consolidated Edison could be a reasonable buy-it-and-forget-it holding for conservative, long-term investors.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.