In this part, we’ll discuss California utilities’ total returns. Sempra Energy (SRE) returned 3%, while utilities at large (XLU) returned 2% in the past year. In comparison, PG&E (PCG) and Edison International (EIX) returned -33% and -12%, respectively, during the same period. Total returns consider the dividend payments and stock appreciation in a particular period.
PG&E has suspended its quarterly dividends since the fourth quarter of 2017 based on uncertainties arising due to wildfire-related liabilities. In comparison, Sempra Energy is trading at a dividend yield of 3% with expected double-digit dividend growth for the next few years. Edison International offers a yield of 3.5%.
In the last five years, Sempra Energy returned more than 9%, while Edison International and PG&E returned 11.5% and 7% compounded annually.
PG&E stock has shown solid momentum and rose more than 15% in the last three months. Read What Fueled PG&E’s Recent Rally? to learn more.
Next, we’ll discuss analysts’ recommendations for these California utilities.