Edison International Stock Price - A Stock to Hold in Recession

PUBLISHED Jun 27, 2022, 7:18:54 AM        SHARE

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imgRashada Parveen

Edison International stock price reflects the fair value of this stock in the utility sector. Both value investors and the defensive investors can buy this stock to earn higher income during the inflationary pressures and the higher interest rate. Let’s discuss how this stock can help you remain calm during a possible recession, earning stable and relatively high dividends. So, let’s start!

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About the Edison International

Edison International was established in 1886. With years of experience and expertise in the energy and power sector, this California-based company generates and delivers electrical power to the residents and the commercial sector, ensuring they get renewable and data-driven energy solutions to meet their electricity needs.

Southern California Edison (SCE) and Edison Energy Group are also generating and delivering state-of-the-art and tech-rich energy solutions operating as the subsidiaries of their parent company Edison International.

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In order to expand its services, EIX has contracts with many International firms to foster growth by encouraging research and development and arranging exciting events. Interestingly, hedge funds do not own one of the largest power-generation companies in California. Instead, institutional investors have shown a keen interest in this company.

For example, vanguard group Inc. owns 12% of the total outstanding shares, followed by the Capital Resources and Management Company with 9.6% ownership and 8.3% by the Black Rock.

Besides, the company’s board of directors has less than 1% equity in this company. In addition, the public has invested in the 11% of the outstanding shares.

Is Edison International Stock a Good Buy?

Looking at the historical price of the EIX stock, we can observe that the price has been rising continuously for many years. It is one of those companies paying dividends to its investors for the last 18 years. So, it will be a good stock to buy if you want to hedge against inflation and want to earn stable & higher yields.

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Edison International Stock Price

Compared with competitors in the energy and utility industry, the Edison International stock price is increasing side by side with the other stocks.

The current price of EIX is close to a historically low level at $62.79. It might go down in anticipation of tighter monetary policy by the Fed. Compared to the historical 52-week high level of $73.32 and 52-week price of $54.41, the value and defensive investors can buy this Southern California stock. Apart from the higher price, the dividend yield is stable and dividend-loving people can enjoy a steady dividend returns during a possible recession amid high-interest rates accompanied with rising energy prices.

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The dividends have been increasing steadily over the many years. Even, though this energy stock is yielding an annualized dividend of 3.45% during the present economic slowdown.

In the first quarterly report of 2022, Edison International affirmed to generate an EPS between $4.40 and $4.70 with a long-term EPS target of 5% to 7% by the end of 2022. With a net income of $84m, the core earnings of EIX were reported at $407m and $1.07 per share which is higher than the previous year’s earnings.

Moreover, the dividend loss per share was increased due to the higher number of preferred stocks.

Interestingly enough, this safe stock to hold is at a fair value as compared with its peers in the utility sector. It means, it is high time the value investors and conservative investors should take advantage of this bearish trend in the stock market and buy this stock at the dip and hold it to enjoy the dividends for a long time.

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It is one of those dividend stocks paying returns steadily every quarter and you can earn a passive income during the most anticipated recession when you would cut back your expenses considerably without compromising on the utility expenditures.

Read also: Utility Stocks in a Recession- Are Utility Stocks a Good Buy Now?

The Bottom Line

In sum, the EIX stock is the best choice among the dividend investors as well as the value investors due to the stable dividend earnings and the lower market value. The lower price and the stable dividend yields are attractive for the investors to put their money in a safe stock like EIX.

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Edison International’s stock price is enough to attract new investors who are seeking to invest in a fairly-priced stock during a bearish market and higher inflation.

This utility stock not only provides safety against inflation by paying out stable dividends but also ensures higher yields than other stocks in the energy field. Buy and hold this stock and enjoy paying the higher utility bills by the dividends you have earned from the Edison International Stock price. Invest smartly and earn income for a long time.

Read Also: NextEra Energy Stock (NEE)



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