Edison Pays More Than Eversource, but the Extra Yield Covers Wildfire Risk

Edison International and Eversource are both regulated utilities, yet their dividends compensate investors for different problems. Edison offers the larger current income stream and stronger earnings coverage. Eversource has less catastrophic-event exposure, but its balance sheet and funding plan leave less room for error.

Edison reported second-quarter core EPS of $1.54, up from $0.97 a year earlier, and reaffirmed 2026 core EPS guidance of $5.90 to $6.20. Management expects core EPS to grow 5% to 7% annually from 2025 through 2030 and says no common-equity issuance is forecast through that period.

The uncertainty sits outside the normal utility model. Southern California Edison had recorded $1.6 billion of Eaton Fire settlement losses through June 30, while the company said it could not reasonably estimate the eventual range of losses. That open exposure is the main reason investors should not treat Edison's elevated yield as free income.

Eversource is rebuilding its balance sheet

Eversource reported second-quarter GAAP earnings of $53.7 million, or $0.14 per share, down from $352.7 million, or $0.96 per share, a year earlier. Results included a $111.4 million charge tied to the Aquarion sale and a $164 million charge related to offshore-wind contingent liabilities. Those items obscure the continuing regulated businesses but still represent real claims on capital.

The sale of Aquarion brought in about $1.7 billion of net proceeds for parent-level debt reduction. Eversource also declared a quarterly dividend of $0.7875 per share, equivalent to $3.15 annually. Even after the sale, management's multiyear plan includes additional equity issuance, reflecting the financing demands of its investment program.

Edison provides the more generous payout and a clearer earnings-growth target. Eversource provides geographic diversification away from California wildfire law and a simpler liability picture, but not a debt-free one. The choice comes down to whether Edison's discount adequately compensates for a loss range the company itself cannot yet estimate.