Edison International Boosts Shareholder Returns with Dividend Hike and Strategic Investments

Edison US2091151041

Edison International continues to demonstrate its financial resilience, combining robust operational performance with a clear commitment to returning capital to shareholders. The utility's recent announcement of another dividend increase, coupled with a significant capital expenditure plan, has captured investor attention.

In a move that underscores its financial health, Edison International has declared a 6% increase in its quarterly dividend, raising the payout to $0.8775 per share. This adjustment, announced in January, marks the 22nd consecutive year the company has raised its distribution. The strengthened dividend is scheduled for payment this Saturday.

This positive news has been reflected in the equity's performance. Just last Tuesday, shares of Edison International climbed to a 52-week high of $62.62, signaling strong market confidence.

A Multi-Billion Dollar Infrastructure Strategy

Central to the company's forward-looking strategy is a substantial investment program targeting its regulated utility operations. Management has outlined plans to allocate between $28 billion and $29 billion through 2028. These funds are earmarked for modernizing electrical grids and advancing California's ambitious clean energy objectives. A key point for investors is the company's intention to finance this expansive plan without issuing new equity, thereby avoiding shareholder dilution.

Concurrently, Edison is taking steps to strengthen the balance sheet of its subsidiary, Southern California Edison. The company has filed for the securitization of approximately $1.95 billion. This financial maneuver is designed to address costs stemming from past wildfire liability claims related to the Woolsey Fire, effectively alleviating pressure on the subsidiary's financial statements.

Upcoming Financial Results and Long-Term Guidance

The market now looks ahead to the release of Edison International's fourth-quarter 2025 earnings, scheduled for February 18. Analysts anticipate the report, due after the market closes, will provide detailed insights into recent operational performance and likely reaffirm the firm's long-term financial targets.

The company maintains its forecast for annual growth in core earnings per share, projecting an increase of 5% to 7% through the 2028 period. The upcoming quarterly results will offer a fresh data point on the utility's progress toward this goal.