At first glance, the investment equation looks almost too clean. A dividend yield above six percent, a subdued valuation multiple, and volatility below the market average. For income-focused investors, this combination usually signals a defensive, utility-style holding designed to anchor a portfolio through market cycles.

The reality, however, is more complex. Behind the stable cash flows of a regulated electricity business lies a risk factor capable of rapidly reshaping both valuation and dividend confidence. Wildfire exposure in California introduces a structural uncertainty that can shift investor sentiment from complacency to crisis mode in a matter of weeks. This is not a dividend story built on simplicity, but on understanding where stability truly comes from—and where it can abruptly break.

Top points of analysis

• A dividend yield of around 6% is a major magnet, but the market provides it as compensation for specific "event risk".

• Valuation is low (P/E 7.85; EV/EBITDA 7.10), which…