Thursday's Top Sectors: Consumer Goods and Utilities
Consumer Products Sector Performance: Consumer Products stocks are the best performing sector, down only 0.2%, with Brown-Forman Corp and Clorox Co gaining 2.0% and 1.8%, respectively, despite both being down significantly year-to-date.
Utilities Sector Performance: The Utilities sector follows closely, down 0.3%, with Edison International and PG&E Corp showing gains of 1.4% and 0.7%, respectively, while both are also down year-to-date.
ETFs Overview: The iShares U.S. Consumer Goods ETF is down 0.1% today but up 5.01% year-to-date, while the Utilities Select Sector SPDR ETF is down 0.3% today and up 18.79% year-to-date.
Overall Market Snapshot: None of the sectors are up in afternoon trading, with nine sectors experiencing declines, indicating a generally negative market trend.
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- Redemption Announcement: Edison International has announced the redemption of all outstanding shares of its 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A, on March 9, 2026, at a price of $1,000 per share, aimed at optimizing its capital structure and reducing financial costs.
- Redemption Agent Details: The redemption will be facilitated by Equiniti Trust Company, LLC, and shareholders holding Series A Preferred Stock through The Depository Trust Company (DTC) must follow DTC procedures, ensuring a smooth redemption process.
- Rights Termination Notice: After the redemption date, all outstanding shares will cease to be considered outstanding, and distributions will stop accruing, with holders retaining only the right to receive the redemption price, reflecting the company's commitment to shareholder rights.
- Company Overview: Edison International is one of the largest electric utility holding companies in the U.S., serving approximately 15 million people and focusing on providing clean and reliable energy services, highlighting its strategic positioning in the sustainability sector.
- Redemption Announcement: Southern California Edison has announced the redemption of all outstanding Series K Preference Stock on March 15, 2026, at a price of $25 per share plus accrued and unpaid distributions, which is expected to impact investor cash flows.
- Trust Securities Impact: This redemption will lead SCE Trust V to redeem all of its 5.45% Fixed-to-Floating Rate Trust Preference Securities, with holders ceasing to accrue distributions after the redemption date, reflecting the company's strategy for optimizing its capital structure.
- Operational Process Details: Trust Preference Securities held through The Depository Trust Company will be redeemed according to its procedures, and holders are advised to contact their brokers for further information to ensure a smooth redemption process.
- Company Background: Southern California Edison, a subsidiary of Edison International, is one of the largest electric utilities in the U.S., serving approximately 15 million people through 5 million customer accounts across a 50,000-square-mile service area, highlighting its significant role in the energy market.
- Investor Preference: During turbulent and uncertain market conditions, many investors gravitate towards high dividend-yielding stocks, which typically possess high free cash flows and reward shareholders with substantial dividend payouts.
- Sector Analysis: High-yield stocks in the utilities sector are under significant analyst scrutiny, particularly Brookfield Infrastructure Partners L.P. (BIP), Eversource Energy (ES), and Edison International (EIX), which excel in stability and profitability.
- Analyst Ratings: Based on the most accurate analyst ratings, these three high dividend stocks are considered top picks for investors, reflecting their appeal in uncertain market environments.
- Market Trends: As market volatility intensifies, the demand for high dividend stocks may continue to rise, potentially driving up the stock prices and market performance of these companies.
- Edison International Rating Update: Barclays analyst Nicholas Campanella maintains an Overweight rating on Edison International (EIX) while lowering the price target from $68 to $67, reflecting a 65% accuracy rate, despite the company posting upbeat quarterly results recently.
- Brookfield Infrastructure Outlook: Jefferies analyst Anthony Linton keeps a Buy rating on Brookfield Infrastructure Partners (BIP) with a price target of $35, with a 50% accuracy rate, as the company prepares for its fourth-quarter conference call on January 29, which may influence investor sentiment.
- Dominion Energy Rating Dynamics: Barclays analyst Nicholas Campanella maintains an Overweight rating on Dominion Energy (D) while cutting the price target from $64 to $63, indicating a cautious market outlook with a 65% accuracy rate from analysts.
- Market Reaction and Earnings Call: Dominion Energy plans to host its fourth-quarter earnings call on February 23, which could impact stock prices, particularly in light of the recent adjustments to analysts' price targets.

- Rating Downgrade Impact: Wells Fargo downgraded Edison International (EIX) from Equal Weight to Underweight with a $59 price target, primarily due to the unresolved Eaton Fire liability, which diminishes market confidence in the company's future prospects.
- Liability Risk Uncertainty: The analyst highlighted that the full picture of the Eaton Fire investigation remains unclear, and liability estimates continue to weigh heavily on Edison, compounded by uncertainties surrounding California's liability framework and regulatory environment.
- Legal Complexity: While the recent lawsuit against Los Angeles County and several water agencies may present a potential positive, it also introduces complexity and a longer timeline, further increasing the legal risks faced by the company.
- California Environmental Challenges: With the upcoming gubernatorial election year, the unresolved wildfire liability issues in California pose significant operational risks for Edison, despite the company having largely wrapped up its regulatory activities and legacy fire claims.

- Compensation Program Launch: Southern California Edison initiated its Wildfire Recovery Compensation Program on October 29, aiming to provide swift and transparent compensation to community members affected by the Eaton Fire, with over 5,000 residents having applied so far, reflecting strong community engagement and need.
- Community Feedback Integration: Prior to the program's launch, SCE engaged with over 1,000 community members to gather feedback, resulting in more than 50 updates to the program, ensuring the compensation process aligns with residents' needs and enhancing community trust and participation.
- Infrastructure Investment: The company is committed to investing in infrastructure improvements, including undergrounding approximately 153 miles of distribution circuits in Altadena and Malibu over the coming years, aimed at reducing future wildfire risks and supporting sustainable growth in Southern California.
- Fast Processing Commitment: The average claim processing time is around 90 minutes, with SCE collaborating with compensation fund design experts to ensure a fair and swift process, aiming to help community members rebuild their lives as quickly as possible.





