Edison International
EIX (NYSE)
Edison International (EIX) stands out as a top-rated utility stock, recognized by Morningstar analysts as one of the best undervalued options for investors in 2026. With a solid dividend yield of 4.70% and a moderate payout ratio of 30.9%, EIX offers a balance between rewarding shareholders and reinvesting for growth. Analysts have set a median 12-month price target of $78.00, with a range from $62.00 to $82.00, indicating strong potential upside.
Pros:
- High dividend yield
- Potential for undervaluation
Cons:
- Recent downgrades from analysts
- Market performance variability
Edison International (EIX) may be suitable for income-focused investors seeking exposure to the utility sector, given its attractive dividend yield and consistent returns over both one and five years. Additionally, its potential for capital appreciation, as indicated by analysts' price targets, makes it a compelling option for those looking to balance income with growth.