10 Best Stocks to Invest in for Passive Income

6. Edison International (NYSE:EIX)

Number of Hedge Fund Holders: 38

Dividend Yield as of February 24: 6.34%

Edison International (NYSE:EIX) is a public utility company, based in California. The company produces electricity from various sources, including natural gas, nuclear energy, and renewables. It is facing challenges this year due to lawsuits holding it accountable for wildfire damages. These ongoing legal battles create uncertainty and potential risk for investors. Since the beginning of 2025, the stock has fallen by nearly 35%.

Despite these hurdles, Edison International (NYSE:EIX) has continued to increase its dividend, supported by a solid cash position. At the end of the most recent quarter, it held around $200 million in cash and cash equivalents. Additionally, its operating cash flow grew to $3.8 billion in the first nine months of the year, up from $2.5 billion in the same period last year.

In December 2024, Edison International (NYSE:EIX) raised its quarterly dividend by 6.1% to $0.8275 per share. This latest increase extended the company’s dividend growth streak to 21 consecutive years, which makes it one of the best stocks to buy for passive income. As of February 24, the stock has a dividend yield of 6.34%.

At the end of Q4 2024, 38 hedge funds tracked by Insider Monkey held stakes in Edison International (NYSE:EIX), growing from 29 in the previous quarter. The overall value of these stakes is over $902 million. With over 5.3 million shares, Pzena Investment Management was the company’s leading stakeholder in Q4.