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- 1. How to buy Edison International shares (EIX)
- 2. Compare the best Edison International trading platforms
- 3. How to buy Edison International stock, a step-by-step guide
- 4. Should I invest in Edison International?
- 5. Buying, selling and trading Edison International shares for beginners
- 6. Share dealing vs CFD trading
- 7. How to choose a broker
How to buy Edison International shares (EIX)
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77% of retail CFD accounts lose money.
This page delves into Edison International and explains what the company has to offer for investors. Read on to learn about the company’s business model, track record, latest market performance and ambitions for the future.
Compare the best Edison International trading platformsCopy link to section
Finding a trading platform that works for you is easier said than done. That is why we have listed a few of the best places to buy Edison International stock below along with a brief description of their perks and features. Click on one of the links to sign up, or keep scrolling you find out more about Edison International.
77% of retail CFD accounts lose money.
Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
How to buy Edison International stock, a step-by-step guideCopy link to section
The process of getting shares in Edison International is quick and easy, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:
- Choose a broker. You need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Edison International shares.
- Place an order for EIX stock. Search for Edison International’s ticker symbol (EIX) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Edison International shares will be listed in your account. Congratulations, you’ve just bought shares in Edison International.
Should I invest in Edison International?Copy link to section
Founded in 1886 and based in Rosemead, California, it is a holding company. Its largest subsidiary is called Southern California Edison, and this electric utility company provides electricity, fresh water and gas to around 15 million residential, commercial and industrial consumers, and other customers across various segments of America’s most populous state, California.
The company’s power distribution network consists of around 39,000 circuit-miles of overhead lines, 31,000 circuit-miles of underground lines and 800 substations.
Since a shift in the state legislature that caused Californian utilities to exit coal-fired power production in 2010, Edison International has been working to cement its status as a key green energy player. These days, Southern California Edison sources at least 46% of its fuel to generate power from clean energy, including nuclear power, biomass and wind. If you buy into the renewable energy macro story and like EIX’s business model, it could be a smart investment.
How has the company performed in recent years?Copy link to section
Edison International’s share price performance has been underwhelming in recent years. However, if you expand the timeframe to the last decade, it has almost doubled in size. Moreover, it is important to remember that the company has come along massively since it first went public many decades ago.
What sweetens the deal for EIX shareholders is the dividend yield on offer. It stands at well over 4%, providing consistent predictable returns that may be desirable for certain kinds of investors. While the company’s revenue has not grown much over the last decade, it still stands at over $13 billion per annum, which is substantial. With over 12,000 employees and a robust base of customers, EIX could be a good addition to a value portfolio.
The company paid out its first dividend in 1910, and it has consistently provided shareholders with a chunk of its profits ever since. As a result, it is one of the top utility companies for risk-averse investors. As the world emerges from the COVID-19 pandemic, there should be some opportunities for EIX to upgrade its presence in the clean energy sector and expand to other jurisdictions.
Is it a good time to buy Edison International shares now?Copy link to section
This largely hinges on what kind of investors you are. Essentially, if you want to invest in EIX stock for the long term, you need to analyse the company on a fundamental level and deduce what you believe it is worth. If the current market value of Edison International stock is lower than you believe it should be, it may be a good time to purchase some ahead of future growth.
For short-term traders, their focus is more directed towards market sentiment and trends, which are observable via technical analysis. This will give you the best indication of where the market is heading so you can quickly open and close positions to take advantage of price fluctuations.
it is extremely important when investing to be informed about the company you are placing capital into. As a result, we highly recommend reading the latest news pieces we have featured below. They contain detailed price analysis and coverage of the latest events to unfold surrounding Edison International.
Buying, selling and trading Edison International shares for beginnersCopy link to section
What to do before buying sharesCopy link to section
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before you start.
- Research the company. You should always examine the fundamentals of a company first. What is Edison International? How did the company get its start? How did it grow? Does Edison International’s balance sheet look like it’s in a good place? Is the company innovating? The more you know about Edison International, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the latest news to keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?Copy link to section
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Edison International shares. Here’s a quick run-through of what’s involved in each.
Buying Edison International
This process involves finding a broker and placing an order for Edison International stock, as outlined in the steps further up this page. Ideally, you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
Selling Edison International
When you sell any Edison International shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Edison International’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading Edison International
Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Edison International shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD tradingCopy link to section
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealingCopy link to section
Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
CFD TradingCopy link to section
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into EIX shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our course on how to trade stocks.
How to choose a brokerCopy link to section
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large, these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as cryptocurrency and forex.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to fund your trading account using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >