uploads///money _

How Dominion Energy’s Dividend Profile Compares to Peers

By

Dec. 4 2020, Updated 10:53 a.m. ET

Dominion’s ex-dividend date

Dominion Energy (D), the third-largest utility, declared a per share dividend of $0.84 per share for 1Q18 last month. The ex-dividend date is March 1, and it will be paid on March 20, 2018. Dominion Energy is expected to pay annualized dividends of $3.34 per share in 2018, almost a 10% increase from dividends of $3.04 per share last year.

Dominion Energy has a strong dividend payment history. It has been paying quarterly cash dividends for the last 90 years.

Article continues below advertisement

Dividend yield

Dominion Energy is currently trading at a dividend yield of 4.4%, significantly higher than the industry average of 3.5%. Peer Duke Energy (DUK) is trading at a yield of 4.7%, while Georgia-based Southern Company (SO) offers a dividend yield of 5.2%.

In the last five years, Dominion Energy’s dividends increased by 7.5% compounded annually. At the same time, the Utilities Select Sector SPDR ETF (XLU), which tracks the S&P 500 Utilities Index, managed to increase its per share dividends by 4% compounded annually. Dominion Energy’s above-average dividend growth is fueled by its above-average earnings growth. Dominion obtains more than 85% of its total earnings from regulated operations. Thus, the company has relative earnings stability, which ultimately bodes well for stable dividends.

By comparison, Southern Company increased its per share dividends by 3.4%, while Duke Energy’s dividend growth rate came in at 2.9% compounded annually in the last five years.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.