Core Viewpoint - Edison International (EIX) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors rely on earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling actions [4]. Company Performance and Outlook - The upgrade reflects an improvement in Edison International's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - The Zacks Consensus Estimate for Edison International indicates expected earnings of $6.10 per share for the fiscal year ending December 2025, with a 2.5% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Edison International's upgrade places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - The article discusses the trend of investors shifting towards dividend-paying stocks as market valuations reach historically high levels, particularly in the tech sector, indicating a preference for income and stability in uncertain times [1][2][3]. Market Trends - Valuations in the S&P 500 are elevated across 18 of 20 measures tracked by Bank of America, prompting a rotation from tech stocks to more defensive sectors [1][3]. - Defensive sectors such as health care, utilities, and consumer goods are regaining favor as tech stocks revert to their traditional growth role [2][3]. Dividend Stocks Performance - Dividend-paying stocks are favored during periods of high market valuations due to their lower valuations and steady cash flows, which help cushion against volatility [3]. - An analysis by T. Rowe Price indicates that dividend growth stocks in the Russell 1000 Index delivered an annualized return of 11.3% from 1985 to 2019, outperforming both dividend payers (10.8%) and the index as a whole (10.5%) [4]. Specific Companies - **JPMorgan Chase & Co. (NYSE:JPM)**: - Ex-dividend date is January 6 with a dividend yield of 1.80%. Barclays raised its price target to $391 from $342, citing continued earnings growth into 2026 [10][11]. - The company launched a new advisory unit focusing on specialized insights in areas like AI and cybersecurity, aiming to expand its advisory services [12][13][14]. - **Edison International (NYSE:EIX)**: - Ex-dividend date is January 7 with a dividend yield of 5.79%. The company announced a quarterly dividend increase to $0.8775 per share, marking a 6% rise in annual dividends [15][17]. - The CEO emphasized the company's financial strength and commitment to long-term growth targets of 5% to 7% [17]. - **Marvell Technology, Inc. (NASDAQ:MRVL)**: - Ex-dividend date is January 9 with a dividend yield of 0.27%. Melius Research upgraded the stock to Buy, citing a growing backlog in custom silicon and expected revenue doubling in 2027 [18][19]. - The company is positioned well due to increasing demand for AI-focused application-specific integrated circuits, with ASIC shipments projected to grow 45% in 2026 [20][21].

Core Insights - Southern California Edison (SCE) is actively supporting communities in Southern California affected by the January Palisades and Eaton fires through its Wildfire Recovery Compensation Program, which aims to provide direct compensation to eligible individuals and businesses [1][2] Compensation Program Overview - The Wildfire Recovery Compensation Program is a voluntary initiative designed to offer fair and quick resolutions to claims, allowing community members to receive financial support without the delays of litigation [2] - The program was developed with input from over 1,000 community members and has undergone more than 50 updates to enhance eligibility and simplify documentation requirements [3][4] Program Participation and Claims - As of the end of December, 1,748 claims have been submitted, with 51 offers extended totaling $21.98 million, and 27 claims payments made, reflecting SCE's commitment to swift relief [8] - Claimants receive settlement offers within 90 days of a substantially complete claim, with payments made within 30 days after all conditions are met [9] Infrastructure and Recovery Efforts - SCE is investing in infrastructure improvements to mitigate future wildfire risks, including plans to underground approximately 153 distribution circuit miles in areas like Altadena and Malibu [11] - The company is also deploying advanced grid technologies to enhance maintenance and service restoration [12] Investigation Update - SCE is conducting an ongoing investigation into the Eaton Fire, with preliminary findings suggesting that SCE equipment may have been associated with the ignition of the fire [13][14]

Core Insights - Edison International (EIX) is focused on enhancing its infrastructure, modernizing the grid, and expanding its renewable energy portfolio to provide reliable energy to its growing customer base [1] - The long-term earnings growth rate for the company is projected at 10.93% over the next three to five years [1] Tailwinds - EIX is well-positioned to benefit from increasing electricity demand due to the growth of AI-based data centers and the electrification of transportation and buildings [2] - The company is implementing a systematic capital investment strategy to strengthen its infrastructure, ensuring safe and resilient electricity supply [2] Capital Investment - EIX anticipates a long-term capital investment of $28-$29 billion from 2025 to 2028, with approximately 97% of this budget allocated to critical transmission, distribution, and generation capacity [3] Electric Vehicle Market - To leverage the expanding electric vehicle (EV) market, EIX launched the Charge Ready 2 program in 2020, which is the largest light-duty EV charging initiative by an investor-owned utility in the U.S. [4] Headwinds - EIX faces increasing wildfire risks due to climate change, with California experiencing unprecedented weather conditions that may lead to additional wildfire activity in 2025 and beyond [5] - The challenging weather and fuel conditions in California raise the risk of wildfires, potentially impacting operations and financial exposure [5] Price Performance - Over the past six months, EIX shares have increased by 13.6%, outperforming the industry growth of 7.3% [6] Investment Considerations - EIX currently holds a Zacks Rank 3 (Hold), while competitors such as Ameren Corporation, Dominion Energy, and NiSource Inc. have better rankings [9] - The Zacks Consensus Estimate indicates year-over-year EPS growth for AEE, D, and NI of 8.21%, 22.74%, and 7.43%, respectively [10]

Core Insights - Southern California Edison (SCE) is committed to supporting community members through its Wildfire Recovery Compensation Program, which is available until November 30, 2026, for those affected by the Eaton Fire [1][3] Group 1: Program Details - The program was launched on October 29, with a commitment to process claims within 90 days and issue payments within 30 days after all conditions are met [2] - As of December 23, participation includes over 18,000 eligible properties, with 1,669 total claims submitted and 22% of those submitted by plaintiffs' attorneys [7] - The program offers various forms of compensation, including a 17% increase in the monthly fair rental value calculation for displaced renters and owners [5] Group 2: Support and Resources - Claimants can access one-on-one assistance in multiple languages, with trained team members available for support [7] - In-person appointments are offered to help guide claimants through the process, with an average claim form completion time of just over 90 minutes [4] - As of the latest update, 2,445 callers have received one-on-one support, and 215 in-person sessions have been booked [7] Group 3: Company Overview - Southern California Edison, a subsidiary of Edison International, serves approximately 15 million people through 5 million customer accounts across a 50,000-square-mile area in Central, Coastal, and Southern California [6]

Core Viewpoint - Edison International (NYSE:EIX) is facing a cautious outlook in the utility sector, with analysts reducing price targets while the company maintains a commitment to shareholders through dividend increases [2][3][4]. Price Target Adjustments - Morgan Stanley analyst David Arcaro lowered the price target for Edison International from $64 to $59, maintaining an 'Underweight' rating, citing that the utility sector's performance will be influenced by data centers and growth expected in 2026 due to significant investments from Big Tech [3]. - JPMorgan also reduced its price target from $67 to $65 while keeping a 'Neutral' rating, reflecting adjustments in models for the North American utilities sector [4]. Dividend Commitment - Edison International raised its quarterly dividend by 6% to $0.8775 per share, resulting in an annual dividend yield of 6.02%, positioning it among the 15 Dividend Stocks Paying 4%+ Yield in 2025 [5].

Core Viewpoint - Edison International has announced the expiration and results of its cash tender offers for its outstanding preferred stocks, specifically the 5.00% Series B and 5.375% Series A [1] Group 1 - The company is conducting cash tender offers to purchase all of its outstanding 5.00% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series B [1] - The company is also offering to purchase its 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A, alongside the Series B offer [1]

Core Viewpoint - California regulators have reduced the profit margins for utilities on infrastructure investments to address rising electricity bills while balancing the need for grid fortification against wildfire risks [1][2]. Group 1: Regulatory Changes - The California Public Utilities Commission voted 4-1 to set profit returns for PG&E, Southern California Edison, and San Diego Gas & Electric in the range of 9.78% to 10.03%, which is slightly above the national average of approximately 9.72% [3]. - PG&E had requested a profit margin of 11.3%, while Southern California Edison and San Diego Gas & Electric sought margins of 11.75% and 11.25%, respectively [3]. Group 2: Financial Implications - The decision aims to mitigate the financial burden on consumers by controlling utility costs, which have been significantly impacted by the need for infrastructure improvements to prevent wildfires [2]. - The costs associated with fortifying the grid are expected to reach billions of dollars, which utilities typically pass on to consumers [2].

Core Insights - Edison International (EIX) is a significant entity in the Utility - Electric Power sector, providing electric power and energy services [1] - The stock price of EIX is currently $59.58, with a slight increase of approximately 2.16% [3] - The company has a market capitalization of approximately $22.92 billion, indicating its substantial market presence [4] Price Target and Analyst Ratings - David Arcaro from Morgan Stanley has set a new price target for EIX at $57, suggesting a potential downside of about -4.26% from the current trading price [1][5] - EIX holds a Zacks Rank of 2 (Buy), indicating a positive trend in earnings estimate revisions and a favorable earnings outlook compared to its competitor, NextEra Energy, which has a Zacks Rank of 3 (Hold) [2][5] Stock Performance - EIX has shown significant price fluctuations over the past year, reaching a high of $81.02 and a low of $47.73, reflecting its dynamic market performance [3][5] - The trading volume on the NYSE for EIX is 1,158,472 shares, indicating active investor interest [4]

Core Viewpoint - Edison International announced a quarterly common stock dividend of $0.8775 per share, increasing the annual dividend rate to $3.51 per share, which is a 6% increase from the previous rate of $3.31 per share, marking the 22nd consecutive year of dividend growth [1]. Group 1: Dividend Announcement - The quarterly common stock dividend is set at $0.8775 per share, payable on January 31, 2026, to shareholders of record on January 7, 2026 [1]. - The annual dividend rate has increased to $3.51 per share, reflecting a 6% increase from the previous rate of $3.31 per share [1]. - This marks the 22nd consecutive year of dividend growth for Edison International [1]. Group 2: Company Overview - Edison International is one of the largest electric utility holding companies in the United States, focused on providing clean and reliable energy [2]. - The company is headquartered in Rosemead, California, and is the parent company of Southern California Edison Company, which delivers electricity to 15 million people across Southern, Central, and Coastal California [2]. - Edison International also oversees Trio, a portfolio of nonregulated competitive businesses that provide integrated sustainability and energy advisory services in North America and Europe [2].