BOSTON ( TheStreet) -- Utility stocks were the rage in July when investors feared a double-dip. But, in anticipation of QE2, dividend-payers trailed riskier stocks. Utilities currently comprise the cheapest U.S. sector based on earnings expectations. They also represent the most inexpensive subset of the S&P 500 despite yielding more than the U.S. 10-year Treasury bond. Here are the 10 cheapest large-cap utility stocks, from cheap to cheapest.

10. Edison International ( EIX) sells electricity in coastal and southern California. Its third-quarter profit increased 27% to $510 million, or $1.57 a share, as revenue grew 3.4%. The operating margin widened from 21% to 23%. Edison has $2 billion of cash and $12 billion of debt. Its stock trades at a trailing earnings multiple of 9.5, a forward earnings multiple of 12, a book value multiple of 1.1 and a cash flow multiple of 3.3, 34%, 5%, 32% and 39% discounts to utility peer averages. Half of the analysts covering Edison rate it "buy" and half rate it "hold."

Dividend Growth: Edison pays a dividend yield of 3.3% with a payout ratio of 32%. It has a three-year dividend growth rate of 2.8% and five-year growth of 4.7%.

Bullish Scenario: RBC Capital Markets expects Edison's stock to advance 19% to $45.

Bearish Scenario: Citigroup values Edison's stock at $33, implying it is 15% above fair value.

If you liked this article you might like

Exxon, Occidental Remain In Index Fund Crosshairs Over Climate Change

Uber Fighting to Stay Ahead in Flying Car Initiative

The S&P 500 Companies With the Most Diverse Boards

Despite Its Unsexy Business, Duke Energy Is Still a Hot Stock

Avangrid Chart Shows Good Fundamentals Not Everything in Trading