What is the yield on the newly declared preferred dividends compared to similar utilities and competitor offerings?

Yield comparison

Edison International’s two newly‑declared perpetual preferreds are fixed‑rate reset securities that pay:

*Yield is calculated as annual dividend divided by the typical $100 par value, which is the baseline most market participants use for pricing perpetual preferreds unless a discount/premium is evident in the secondary market.

How the yields stack up

• Peer utilities – Most large U.S. utility preferreds (e.g., Southern Co., NextEra, Duke Energy) trade in the 4.0 %–4.5 % yield range for comparable 5‑year reset or perpetual series. Edison’s 5.38 % and 5.00 % therefore sit ≈ 0.5 %–0.8 % above the bulk of the sector.
• Competitor offering – Southern California Edison (a sister utility) recently issued a 5.00 % perpetual series that is quoted at about 4.6 %–4.8 % after a modest premium on secondary trade. Edison International’s series A at 5.38 % is therefore the highest‑yielding utility preferred on the NY‑e X today.

Trading implications

1. Yield‑seeking investors – The elevated 5‑plus‑percent yields make the Series A and B issues attractive relative to the “mid‑4 %” utility peers, especially in a low‑volatility, rate‑sensitive environment where capital‑preserving assets are prized. Expect modest buying pressure if the broader market is short‑duration or if risk‑off sentiment pushes investors toward higher‑yield, equity‑like credit.
2. Credit and call risk – Both securities are cumulative and perpetual, but the reset feature means the dividend will be repriced at the next reset date (typically every 5 years). In a rising‑rate environment the reset could lift the cost of capital, capping upside for price appreciation. Moreover, the corporate credit profile (EIX Moody’s‑A1/Nasdaq‑S&P A+) is comparable to peers, so default risk is low; however, relative‑value traders should monitor any widening spread to the “utility preferred benchmark” (U.S. Repo 5‑y Treasury + ~3‑4 bps) for upside/downside triggers.
3. Position‑sizing – If you seek a yield‑enhancement play, a small allocation (≈ 5‑10 % of a utility‑biased basket) into Series A can lift the basket’s overall yield without materially increasing credit exposure. Conversely, avoid a large‑cap exposure to Series B if you anticipate a near‑term interest‑rate hike, as its 5.00 % yield is already on the higher side of the sector and could price in at a discount when rates move.

Bottom line: Edison International’s newly declared preferreds deliver 5.38 % and 5.00 % yields, out‑performing the typical 4.0‑4.5 % range of comparable utilities. The higher yield offers a modest “yield‑catch‑up” opportunity, but traders should hedge the rate‑reset exposure and keep position sizes modest until market pricing of the reset dates stabilises.