Edison International is an electricity generation, distribution, and wholesale utility in Southern California. About 20% of sales are from owned generation. EIX is a leader in renewable energy and does not use coal in its fuel mix (which includes natural gas 25%; wind, 10%; solar, 18%; hydro, 5%; and Geothermal 6%). It has two subsidiaries: Southern California Edison (SCE), an electric utility serving 15 million people in Southern California (excluding San Diego and Los Angeles), and Edison Energy, an energy and sustainability advisory company that provides data to commercial and industrial users. SCE has about five million customer accounts in Central and Coastal Southern California. Its service area is about 50,000 square miles and the subsidiary typically accounts for about 99% of overall revenue. Edison has had litigation issues. It recently settled a range of claims, including $52 million for discrepancies in the distribution of energy-efficient lightbulbs, $1.16 billion in subrogation claims for a 2017 wildfire, and $2.2 billion in damages from the Wolsey Fire. The company is headquartered in Rosemead, California, and is a component of the S&P 500. EIX's market cap is $26.6 billion.

U.S. stocks were higher on Tuesday morning following the release of hotter-than-expected inflation data In February, headline CPI-U rose 0.4%, matching expectations and up from 0.3% last month. This brings the annual inflation rate to 3.2%, up from 3.1% last month. Core CPI rose 0.4%, matching the prior month but ahead of expectations for the second straight month, bringing annual core-CPI to 3.8%, down from 3.9% last month. Over 60% of the monthly increase for headline CPI was from the shelter and energy components. Investors still expect the first rate cut will be in June. The Dow rose 0.7%, the S&P 500 was up 1.0%, and the Nasdaq gained 1.4%. Crude oil traded above $78 per barrel, while gold fell $22 to $2167 per ounce.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. That's a recent rarity, as for the past decade-plus, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks that year. While growth stocks have retaken the lead since 2023, the Federal Reserve continues to keep interest rates high to fend off inflation. This could possibly cap multiple expansion for growth companies in coming quarters. In any event, the value sector is the place to achieve income.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. That's a recent rarity, as for more than a decade, the performance record favored growth. Since 2010, the Russell 1000 Growth Index has climbed more than 575%, compared to an advance of almost 200% for the Russell 1000 Value Index. In 10 of the past 13 years, growth stocks have topped value stocks. That hasn't always been the case. In the 2000-2010 decade, including the Great Recession, value stocks were better performers than growth stocks, advancing an admittedly low 8% (but still better than growth, which declined 15% during the decade). Value investors trace their roots to the famous "Security Analysis" textbook, written by Ben Graham, an economics professor at Columbia University. Warren Buffett was one of his students. Why the recent deviation in performance? Several reasons, including changes in the make-up of the economy, growth in intangible assets, and the current level of interest rates. But the tide turned back in 2022, at least for a while, as the rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent years. While growth stocks have recaptured the lead since 2023, the Federal Reserve continues to keep interest rates high to fend off inflation. This could possibly cap multiple expansion for growth companies in coming quarters. In any event, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.0%, compared to the 0.7% current yield on the iShares Russell 1000 Growth Index ETF. For our list this week, we have screened our coverage universe for stocks that are BUY-rated by Argus Research analysts, have an Argus Financial Strength Rating of at least Medium, and have a yield of 3.0% or higher. Here's a baker's dozen that meet the criteria. These stocks are also featured in our High-Yield theme model portfolio.