Top Wall Street Analysts Share Insights on 3 High-Dividend Utility Stocks
Investor Interest in Dividend Stocks: In uncertain market conditions, investors are increasingly drawn to dividend-yielding stocks, which typically feature companies with strong free cash flows that provide high dividend payouts.
Edison International Ratings: Edison International (EIX) has a dividend yield of 5.70%. Analyst Daniel Ford from UBS maintained a Buy rating with a price target increase from $66 to $70, while Barclays' Nicholas Campanella kept an Overweight rating but reduced the price target from $69 to $68.
Avista Corp Ratings: Avista Corp (AVA) offers a dividend yield of 5.06%. Wells Fargo's Shahriar Pourreza initiated coverage with an Equal-Weight rating and a price target of $38, while Jefferies' Julien Dumoulin-Smith raised the price target from $40 to $41, maintaining a Hold rating.
AES Corp Ratings: AES Corp (AES) also has a dividend yield of 5.06%. Argus Research upgraded the stock from Hold to Buy with a price target of $18, while Jefferies upgraded it from Underperform to Hold, raising the price target from $12 to $13.
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- 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.

- Compensation Program Launch: Southern California Edison (SCE) initiated its Wildfire Recovery Compensation Program in October, receiving 1,748 claims and disbursing $21.98 million, demonstrating the company's swift response and support for affected communities.
- Fast Compensation Commitment: The program promises to provide settlement offers within 90 days of a claim submission, and to date, SCE has delivered numerous offers ahead of schedule, reflecting its efficient execution in post-disaster recovery.
- Community Engagement Feedback: Prior to the program's launch, SCE engaged over 1,000 community members to gather feedback, resulting in more than 50 updates to the program, ensuring it meets community needs and enhancing public trust.
- Infrastructure Investment: The company plans to invest in infrastructure improvements, including undergrounding approximately 153 miles of power lines over the next few years to enhance fire prevention capabilities and support long-term growth in Southern California, showcasing its strategic foresight for the future.
- Dividend Appeal: Edison International's annual dividend of $3.51 per share, paid quarterly, attracts value investors seeking profitable companies at attractive valuations, highlighting the company's strong performance in profitability and valuation metrics.
- Importance of Dividend History: According to Dividend Channel, analyzing a company's long-term dividend history is crucial for assessing the sustainability of recent dividends, which not only aids investors in making informed decisions but may also influence the company's future shareholder return strategies.
- Investor Research Tool: Utilizing its proprietary DividendRank formula, investors can identify the most attractive stocks, with this tool designed to provide a foundation for further research, thereby enhancing the profit potential of their investment portfolios.
- Market Response: While the article does not specify market reactions, the combination of Edison International's dividend policy and profitability could generate positive sentiment among investors, potentially increasing the attractiveness of its stock.








