These 10 Dividend Stocks are Underperforming in 2025

3. Edison International (NYSE:EIX)

Dividend yield: 6.08%

Ex-Dividend Date: April 7, 2025

Number of Hedge Funds: 38

The public utility holding company based in California, Edison International (NYSE:EIX), is engaged in generating, distributing, and investing in electric power and energy services. The company primarily focuses on clean energy and grid modernization. Through its subsidiary, Southern California Edison (SCE), the company serves over 15 million people living in central, coastal, and Southern California regions.

Year-to-date, the stock faced a decline of -29.82% as of February 28, 2025. The core EPS of $4.93 surpasses the midpoint of guidance. However, the decline comes as it has been ruled out that Southern California Edison customers will cover $1.6 billion of a $2.4 billion wildfire settlement, impacting ratepayers. Edison International (NYSE:EIX)’s shareholders will fund $1 billion, with additional investments in wildfire prevention. On the other hand, the company’s revised EPS guidance for 2025 stands at $5.50 to $5.90, plus $0.44 from TKM settlement. The 21st consecutive annual increase in dividend stands at 6.1%, marking a positive outlook for the company.

Edison International (NYSE:EIX) offers a dividend yield of 6.08%. The dividend payout ratio of 95.69% indicates the company’s capability to cover its dividend payments using the generated earnings. Our Insider Monkey database shows 38 hedge funds held stakes in the company in Q4 2024, suggesting a high institutional interest.

Analysts maintain a Buy rating, with a 1-year median price target of $69.23, projecting a 23.13% upside from the current price. Investors can purchase shares before April 7, 2025, and benefit from the upcoming dividend payout.