Based in Virginia, Dominion Power ( D 0.02% ) is a major utility company that excels at providing steady income to its dedicated shareholders. This is particularly significant at a time when nearly every market analyst anticipates that the Federal Reserve will begin reducing the federal funds rate, and consequently, Treasury bond yields, in September.
It’s acceptable to look for alternatives to government bonds in utility stocks, but it’s important to note that not all utility companies are alike. Let’s examine how Dominion Energy compares to the sector average and evaluate the company’s historical earnings performance.
What is the dividend payment from Dominion Energy?
Over the last two and a half years, Dominion Energy has regularly issued quarterly dividends of $0.67 per share. If Dominion Energy maintains this trend, the projected annual dividend payout would amount to $2.68 per share.
If Dominion Energy’s stock price is approximately $56, the company’s projected annual dividend yield would be 4.74%. This is more attractive compared to the utility sector’s average dividend yield of about 3%. Additionally, Dominion Energy offers a higher yield than the 10-year U.S. Treasury Note, which stands at 3.89%.
Has Dominion Energy consistently performed well in terms of earnings?
The goal isn’t solely to pursue high returns, though. Investors should also examine Dominion Energy’s financial performance history. As it happens, the company maintains steady profitability and frequently exceeds Wall Street’s quarterly earnings-per-share (EPS) predictions.
In the second quarter of 2024, Dominion Energy reported its operating (non- GAAP earnings of $0.65 for each share. Analysts had predicted $0.57 per share, while the company previously earned $0.35 per share during the same quarter of the previous year.
Furthermore, Dominion Energy confirmed its anticipated range for operating earnings for the entire year of 2024. $2.62 to $2.87 per share. Unless an unforeseen negative event disrupts the company’s trajectory, Dominion Energy is likely to continue being a reliable source of income with an attractive yield.
Is it advisable to invest $1,000 in Dominion Energy at the moment?
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