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.
Its peers Southern Company (SO) and Duke Energy (DUK) offer dividend yields of 5.5% and 4.6%, respectively.
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.