Edison International EIX strives to provide increased value to its shareholders over the long term. The company has raised its quarterly cash dividend by 15% to 48 cents from the previous payout of 41.75 cents. This hike is a significant step toward achieving its target payout ratio of 45% to 55% of Southern California Edison’s (“SCE”) earnings.
The dividend will be paid on Jan 31, 2016, to shareholders of record as on Dec 31, 2015. On an annual basis, the dividend will amount to $1.92 per share, up from its previous payout of $1.67 per share.
Rosemead, CA-based Edison International, through its subsidiaries, engages in the supply of electric energy in central, coastal and southern California. The company’s chief unit, SCE operates in a supportive regulatory environment. Through 2017, SCE continues to target an 8% average annual rate base and earnings growth driven by infrastructure investment.
Recently, Edison International reported third-quarter 2015 results, wherein adjusted earnings per share came in ahead of the Zacks Consensus Estimate by 5.5%. Revenues however lagged expectations and declined year over year due to lower general rate case (GRC) revenue adjustments. The company reduced its 2015 core EPS guidance. It also lowered its 2015–17 rate base forecast primarily due to lower FERC spending and GRC spending adjustments.
In spite of the reduced guidance, the company remains focused on its transmission and distribution infrastructural development programs, and expanding its operations. SCE continues to invest in infrastructure to provide system reliability, meet California’s low-carbon economy targets, and build the grid of the future.
As of Sep 30, 2015, Edison International had a cash balance of around $134 million, up from $132 million as of Dec 2014. Net cash from operating activities during the first nine months of 2015 was $2,833 million compared with $2,027 million a year ago. Total capital expenditure amounted to $3,134 million during the nine-month period, up 9.7% from $2,856 million in the year-ago period.
Edison International presently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include Korea Electric Power Corp. KEP, CMS Enery Corp. CMS and NextEra Energy, Inc. NEE. While Korea Electric Power sports a Zacks Rank #1 (Strong Buy), CMS Energy and NextEra Energy carry a Zacks Rank #2 (Buy).
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