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Total Returns: Comparing Sempra Energy and Edison International

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Total returns

Sempra Energy (SRE) and Edison International (EIX) underperformed their peers in the last few years in terms of total returns. Sempra Energy returned more than 12%, while Edison International returned -6% in the last 12 months. We have considered capital gains and dividends paid in a specific period to calculate the total returns.

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Underperformance despite strong dividend growth

Sempra Energy returned 45%, while Edison International returned 36% in the last five years. The Utilities Select Sector SPDR ETF (XLU) returned 67%, while the S&P 500 returned 65% in the last five years.

Despite superior dividend growth in the last several years, Edison International underperformed its peers during this period. Edison International’s relatively unstable stock movement, driven by wildfire troubles, dented its performance. In Part 2, we’ll discuss both companies’ dividend profiles.

Sempra Energy’s relatively higher earnings growth had a positive impact on its market performance. The utility’s higher earnings growth contributed to the dividend growth, which led to the outperformance. Sempra Energy returned more than 12%, while Edison International returned -6% in the last 12 months.

Top utilities in the country including NextEra Energy (NEE) and Southern Company (SO) returned 18% and 15%, respectively, in the past year.

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