12 Best 5% Dividend Stocks To Buy According To Hedge Funds

8. Edison International (NYSE:EIX)

Number of Hedge Fund Holders: 29

Dividend Yield as of February 5: 6.31%

Edison International (NYSE:EIX) is an American public utility company, based in California. The company produces electricity from various sources, including natural gas, nuclear energy, and renewables. It also provides consulting services to help organizations reduce energy costs by optimizing their power usage.

Edison International (NYSE:EIX) has maintained dividend growth, supported by its solid cash position. At the end of the latest quarter, the company held around $200 million in cash and cash equivalents. In addition, its operating cash flow increased to $3.8 billion in the first nine months of the year, up from $2.5 billion during the same period the previous year. The company currently pays a quarterly dividend of $0.8275 per share, having raised it by 6.1% in December 2024. This marked the company’s 21st consecutive year of dividend growth, which makes EIX one of the best dividend stocks on our list. The stock’s dividend yield on February 5 came in at 6.3%.

ClearBridge Investments also highlighted the company’s strong business in its Q3 2024 investor letter. Here is what the firm has to say:

“From a sector perspective, meanwhile, our utilities overweight was positive, with Edison International (NYSE:EIX) our top individual contributor. The company reached a tentative deal to recoup $1.7 billion of wildfire and mudslide expenses in California, bolstering its balance sheet, increasing earnings and demonstrating the favorable regulatory environment in California, benefiting both Edison as well as Sempra, our largest utility holding. Another rate-sensitive area — real estate — was the second-best sector performer as rate cuts boosted valuations in this area. Our REITs underweight, however, was a headwind during the period.”

Edison International (NYSE:EIX) was included in 29 hedge fund portfolios at the end of Q3 2024, according to Insider Monkey’s database. The stakes held by these funds are worth nearly $1.4 billion. With over 9.2 million shares, Pzena Investment Management was the company’s leading stakeholder in Q3.