On May 9, Dominion Energy (D), the fourth-largest utility, declared a per share dividend of $0.84 for 2Q18. The ex-dividend date is May 31, and it will be paid on June 20. It’s expected to pay annualized dividends of $3.34 per share in 2018, almost a 10% increase from its dividends last year.
Its peer NextEra Energy (NEE), the largest utility by market capitalization in the country, is expected to pay annualized dividends of $4.44 per share in 2018. These two top utilities are some of the fastest-growing utilities in the sector (XLU) and thus offer higher dividend growth.
Dominion Energy is currently trading at a dividend yield of 5.3%, which is significantly higher than the industry average of 4.3%. NextEra Energy is yielding just 2.7%, one of the lowest in the sector. It has been trading at a significantly discounted yield to the peer average for the past five years.
Dominion Energy has a strong dividend payment history. It has been paying quarterly cash dividends for the last 90 years.
Dominion Energy stock has been notably weak for the last few months. It has fallen almost 25%, which led to a steep rise in its dividend yield. NextEra Energy stock has risen 3% year-to-date.