0

Edison International Stock Price - A Stock to Hold in Recession

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

img
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!

Read Also: Is BBY A Buy or Sell? Is Best Buy still the Best Buy For Investors?

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.

Read Also: Bank of America Stock Price Today - BAC Making Huge Revenues in a Bear Market and Goog Earnings in Second Quarter 2022

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.

Read Also: What Happened to Netflix Stock? Stranger Things About the Netflix Stock Drop in 2022 and Why is Apple Dividend So Low?

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.

Read Also: Why is Dominion Energy Stock Dropping? Is it Still Safe to Invest?, NRG Energy Stock and Will Meta Stock Go Up?

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.

Read Also: Here's How You Can Pay Your Utility Bills with Sempra Energy Stock Dividend and Amazon Stock Price Prediction

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.

Read Also: IS VISA Stock A BUY? WHY & WHY NOT? and Microsoft (MSFT)

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)



Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
The Power of the Mini Market for Private Companies
Image

This article explains how private companies can implement a secondary/mini market for their shareholders. The article starts with an explanation of what a mini market is and why private companies should have it. The article then talks about the mini market process and how companies can establish it.

A Good Week
Image

market commentary

Companies Hiring in the 2022 Crypto Bear Market
Image

In the midst of steady reports of companies throwing their employees under the bus, some have taken the initiative

Companies Firing in the 2022 Crypto Bear Market
Image

Various web3 companies have reacted to the current bear market in multiple ways. Recent events include withdrawal pauses, reduced workforces..

Best Five Crypto Whale Tracking Apps You Would Need
Image

Crypto Whale Tracking Apps benefit people who want to invest in crypto. Find out the best whale tracking apps here...

Stock Buybacks Explained
Image

With Stocks in Rough Territory, Can Share Prices Get a Boost From Buybacks?

How to Survive the 2022 Crypto Bear Market: Tips for Beginners
Image

Remember the silhouette challenge that trended on Tiktok last year? That should give you an idea of the Crypto bear market.

With Oil Sky High, is Exxon a Buy?
Image

Pain at the Pump May Tempt Investors to Grab Big Oil

Here's How You Can Pay Your Utility Bills With Sempra Energy Stock Dividend
Image

Amid rising energy prices and the inevitable recession, the Sempra Energy Stock dividend is something you can rely on.

Why is Dominion Energy Stock Dropping? Is It Still Safe to Invest?
Image

Dominion Energy Stock is dropping for a long time, yet its dividend has not stopped attracting investors.

NIO STOCK FORECAST
Image

NIO is a multinational automobile manufacturing company. It is a Chinese company. Its headquarter is in Shanghai China.

Dow Jones & Company
Image

Dow Jones & Company is considered one of the world's largest business and financial news companies.

IS IT GOOD TO BUY OR SELL AMC STOCK NOW?
Image

AMC (American multi-cinema) Entertainment Holding, Inc. is an American movie theater chain. AMC is one of the largest movie theater chains in the world.

Resources for Publishers
Resources for New Investors