Edison International, Southern California Edison Declare Dividends

Rhea-AI Summary

Edison International (EIX) declares quarterly common stock dividend of $0.78 per share and various dividends for preferred stocks. Southern California Edison (SCE) also announces dividends for different preference stocks. Dividends to be paid on March 15, 2024, and May 1, 2024, to respective holders of record.

Financial Analyst

The declaration of dividends by Edison International represents a commitment to delivering shareholder value and signals confidence in the company's financial health and future earnings potential. The consistent payment of dividends can be seen as a positive indicator to investors, often resulting in a stable or positive effect on the stock price. The specified dividend amounts for common and preferred stock also provide insights into the company's capital allocation strategy and the prioritization of different shareholder classes.

Investors often view preferred stock dividends as a sign of lower risk since they are typically paid before common stock dividends. The various series of preferred stock and their corresponding dividend rates reflect the company's cost of capital and the premium investors demand for different levels of risk. The higher dividends on some series, such as the 7.50% Trust Preference Securities, likely indicate a higher perceived risk or an earlier issuance date when market rates were higher.

Analysts may compare these declared dividend rates to industry norms and current interest rates to assess the attractiveness of Edison International's stock as an investment. The stability and predictability of dividends are key considerations for income-focused investors, particularly in the utility sector, known for its defensive investment characteristics.

Market Research Analyst

Dividend announcements such as this can influence investor perceptions of the utility sector's overall stability and growth prospects. The sector is traditionally seen as a reliable source of dividends, which can be particularly appealing during times of market volatility or economic uncertainty. By maintaining or increasing dividends, Edison International reinforces the sector's reputation for providing steady income streams.

The market may also interpret the dividend declaration as a signal regarding the company's operational efficiency and financial discipline. A company that can sustain or grow its dividends over time is often seen as managing its resources effectively, which can be a positive sign for potential investors. Market analysts would monitor the stock's performance post-announcement to gauge the market's reaction and the potential impact on investor sentiment towards the utility sector.

Economist

From an economic perspective, the dividend declarations by Edison International can be seen as a microeconomic signal of the company's performance and macroeconomic conditions. In a low interest rate environment, the dividends offered by utility companies like Edison International can become more attractive relative to fixed-income alternatives, potentially drawing more investors to the equity market.

Furthermore, the dividend payouts have implications for the broader economy as they can influence consumer spending. Shareholders receiving dividends may have increased disposable income, which can contribute to economic growth. Economists would also consider the impact of such dividend payments on income distribution, as shareholders tend to belong to wealthier segments of the population.

Lastly, the rates of dividends on preferred stock can be indicators of market expectations regarding future interest rates. If the dividends on new preferred stock issues are lower than on existing securities, it might suggest market anticipation of lower interest rates in the future.

ROSEMEAD, Calif.--(BUSINESS WIRE)-- The board of directors of Edison International (NYSE: EIX) today declared a quarterly common stock dividend of $0.78 per share, to be paid on April 30, 2024, to shareholders of record on March 28, 2024.

The Edison International board of directors also declared the following dividends, payable on March 15, 2024, to holders of record on March 1, 2024:

• A semiannual dividend of $26.875 per share on the 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A
• A semiannual dividend of $25.00 per share on the 5.00% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series B

Additionally, the board of directors of Southern California Edison today declared the following dividends:

• A quarterly dividend on the Series G preference stock, which would result in a distribution of $0.31875 per security on SCE Trust II’s 5.10% Trust Preference Securities
• A quarterly dividend on the Series H preference stock, which would result in a distribution of $0.359375 per security on SCE Trust III’s 5.75% Trust Preference Securities
• A quarterly dividend on the Series J preference stock, which would result in a distribution of $0.3359375 per security on SCE Trust IV’s 5.375% Trust Preference Securities
• A quarterly dividend on the Series K preference stock, which would result in a distribution of $0.340625 per security on SCE Trust V’s 5.45% Trust Preference Securities
• A quarterly dividend on the Series L preference stock, which would result in a distribution of $0.3125 per security on SCE Trust VI’s 5.00% Trust Preference Securities
• A quarterly dividend on the Series M preference stock, which would result in a distribution of $0.58854167 per security on SCE Trust VII’s 7.50% Trust Preference Securities

Each of these dividends is to be paid on March 15, 2024, to holders of record on March 14, 2024.

The SCE board also declared a quarterly dividend on the Series E preference stock of $24.4176 per share to be paid on May 1, 2024, to holders of record on April 5, 2024.

About Edison International

Edison International (NYSE: EIX) is one of the nation’s largest electric utility holding companies, providing clean and reliable energy and energy services through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility that delivers electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Edison Energy LLC, a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240221558423/en/

Investor Relations: Sam Ramraj, (626) 302-2540

Media Contact: (626) 302-2255

News@sce.com

Source: Edison International

What is the quarterly common stock dividend declared by Edison International (EIX)?

Edison International declared a quarterly common stock dividend of $0.78 per share.

When will the dividends for preferred stocks be paid by Edison International (EIX)?

The dividends for preferred stocks will be paid on March 15, 2024, to holders of record.

What dividends were declared by Southern California Edison (SCE) for preference stocks?

Southern California Edison declared dividends for Series G, H, J, K, L, and M preference stocks to be paid on March 15, 2024.

When will the quarterly dividend on the Series E preference stock be paid by SCE?

The quarterly dividend on the Series E preference stock of $24.4176 per share will be paid on May 1, 2024, to holders of record.