Why Edison International (EIX) Could Outpace the S&P 500 for a Decade

The S&P 500 might dominate headlines, but don't let its size blind you to the quiet power of regulated utilities. Right now, one stock—Edison International (EIX)—is positioned to crush the market over the next decade. Here's why: structural growth drivers and defensive dividends are creating a perfect storm of returns. This isn't a gamble; it's a calculated play on the future of energy infrastructure and income stability. Let me break it down for you.

The Utility Playbook: Rate Base Growth = Gold

Regulated utilities aren't just boring “widows and orphans” stocks anymore. When a utility invests in infrastructure—think power lines, solar farms, or grid upgrades—that's called rate base growth. And here's the magic: regulators allow these companies to earn a guaranteed return on those investments, no matter what the economy does.

Take Edison International. The company plans to pump $7 billion annually into California's grid through 2028, targeting 7% annual earnings growth. That's not a guess—it's a regulatory promise.

. This isn't just about keeping the lights on; it's about turning infrastructure spending into steady profit.

Dividends That Don't Divert

While tech stocks swing wildly and the S&P 500 chases quarterly beats, utilities like EIX offer income stability. Edison International sports a 6.45% dividend yield—higher than the S&P 500's average of 1.2%—and has raised its payout for 21 straight years. That's a streak longer than most millennials have been alive.

Look at that yield! Even during California's wildfire crisis, EIX kept its dividend growing. Why? Because its earnings are shielded by regulation. When the market tanks, investors flee to safety—and dividends are the ultimate safety net.

Why EIX Beasts the S&P 500

Let's do the math. The S&P 500's 10-year average return is around 9-10%. EIX's rate base investments alone target 7% annual growth, and that's before considering dividend reinvestment. Add in the compounding power of its 6.45% yield, and you're looking at low double-digit total returns.

Plus, utilities are countercyclical. When the Fed hikes rates, utilities thrive because their stable cash flows and regulated returns make them a haven. And with inflation forcing the S&P 500 to trade at lower multiples, EIX's earnings growth could outpace the market's valuation drag.

The Competition? Not Even Close

Other utilities are lagging. Portland General Electric (POR) has a solid 4.54% yield but is in an investment-heavy phase, leaving dividends trailing earnings. Eversource (ES) offers 4.82%, but its $19B capex plan is spread across multiple states, diluting focus. PG&E (PCG) has the highest rate base growth (9%), but its dividend yield is a paltry 0.62%—a red flag for income hunters.

EIX, meanwhile, combines the highest yield with best-in-class regulatory tailwinds. California's push for clean energy isn't just a cost—it's a growth engine. Every dollar Edison spends on solar or grid resilience becomes a revenue-generating asset.

Bottom Line: Buy EIX Now—Before the Crowd

This isn't a prediction; it's a fact based on regulatory filings and rate case approvals. Edison International is a buy-and-hold monster with a dividend that grows while you sleep. The S&P 500 can't compete with that.

Action Plan:
- Buy EIX now—don't wait for the next rate hike or grid deal.
- Reinvest dividends to supercharge compounding.
- Hold for the long haul; this is a decade-long play.

The S&P 500 might headline the news, but Edison International is writing the future. Don't miss your chance to own it.

Disclosure: Past performance ≠ future results, but this time, the math is on your side. Go long on EIX!