Why Edison International’s Dividend Profile Looks Attractive



Edison International’s dividends

Edison International (EIX) declared a dividend of $0.61 per share last week (ended December 8). This represents a sequential rise of 11.5%. The ex-dividend date is December 28, and this will be paid on January 31, 2017.

Notably, EIX has increased its per share dividend for the 14th-straight year.

EIX yld

Edison International’s per-share dividend growth has been phenomenal over the past few years, beating many large-cap peers as well. In the past five years, EIX has increased its per-share dividend by 10.8%, compounded annually. By comparison, utilities’ average (XLU) (IDU) dividend growth during the same period has been close to 4%, compounded annually.

Article continues below advertisement

Dividend yield

Edison International is now trading at a dividend yield of 3.3%—way higher than its five-year average yield of 2.7%. Its yield substantially rose after the stock witnessed a notable fall over the past few trading sessions.

For this reason—at least, for some investors—Edison International’s dividend profile has come to look more attractive, given its superior dividend growth.

Read Market Realist’s series Is PG&E’s Discounted Valuation an Opportunity? for related analysis.

Continue to the next part of this series a look at the implied volatility of EIX stock.


More From Market Realist