Edison International: A Rising High Yield Dividend At A Deep Discount

Edison International offers a 6.4% dividend yield, with 21 years of growth and a payout ratio of 48%. EIX is undervalued by nearly 30%, with fair value estimates between $78 and $80 vs. a $54.81 share price. Expected compound annual total returns range from 17% to 20%, driven by 6% EPS growth, dividend increases, and potential P/E expansion. Wildfire liability remains a risk, but the company's mitigation efforts and regulatory pass-through mechanisms support a 'Buy' rating.

Edison International ( EIX ) is a holding company for Southern California Edison (SoCal Edison) and Trio (formerly known as Edison Energy). SoCal Edison serves a 50,000 square mile area with 15 million people and is one