Dominion Energy Inc
Why Southern Company trades at a lower valuation to its peers
Forward EV/EBITDA is another way to interpret relative valuation. Southern Company has an EV/EBITDA multiple of 10.8x.
What Investors Should Know about Dominion Energy’s Dividends
Dominion Energy’s (D) payout ratio (the percentage of profit that it gave away in the form of dividends) was 81% in 2016, which is higher than the industry average and slightly on the lower side of its five-year payout average of 85%.
Analyzing Dominion Energy Stock before Its 2Q17 Earnings
Currently, Dominion Energy (D) stock is trading at a 1% discount and a 1% premium to its 50-day and 200-day moving averages, respectively.
Will Dominion Energy Report Higher Earnings in Q4 2018?
Dominion Energy (D), the third-largest utility by market cap, will report its fourth-quarter and 2018 earnings results on February 1.
Dominion Resources’ Higher Debt Confirms Its Stretched Financials
Dominion Resources (D) depends upon both internal and external sources of financing for its capital expenses and dividend payments.
XLU: How US Utility Stocks Fared Last Week
US utility stocks continued to recover last week after being weak for more than three months. The Utilities Select Sector SPDR ETF (XLU) rose almost 3%.
How Top Utility Stocks Fared in the First Half of 2018
The utility sector, among the most vulnerable to interest rate hikes, seems strong despite the rate hike in mid-June.
How Dominion Energy’s Dividend Profile Compares to Peers
Dominion Energy (D), the third-largest utility, declared a per share dividend of $0.84 per share for 1Q18 last month.
NRG, CMS, D, and EIX: Analysts’ Target Prices and Views
NRG Energy (NRG) offers a potential upside of more than 11% compared to its current market price of $42.3.
Natural Gas Continued Its Dominance over Coal in December 2015
Cheap natural gas has outperformed coal, pushing coal’s share in power generation down to 27.6% in December 2015, compared to natural gas’s ~34% share.
NextEra Energy and Dominion Energy: How Do They Stack Up?
US utilities seem to be at a critical juncture at the moment.
Why DTE Energy Can Offer Attractive Dividends
DTE Energy’s dividends play a significant part in terms of returns to shareholders. The company currently has a high dividend yield of 3.5%.
Consumer Spending Edges up in February 2015
Consumer spending remained subdued in February. The harsh weather kept consumers indoors. Individuals used the gains from lower gasoline prices to boost their savings.
Dominion Energy and NextEra Energy: Impact on Dividends
Dominion Energy (D) and NextEra Energy (NEE) are both offering double-digit dividend growth for the next few years.
Utility Sector: Will Investors Continue Their Defensive Positions?
The Utilities Select Sector SPDR ETF (XLU), which tracks the performance of the utility sector, rose 2.7% in November 2017.
Top Utilities’ Total Returns in the Past Year
NextEra Energy (NEE) leads the pack with total returns of 21% in the past year. NextEra Energy increased its dividend per share 13%.
Why Brokers Are Positive about NextEra Energy after Its 1Q16 Earnings
Of the 23 analysts tracking NextEra, 18 have given it “buy” recommendations, and five have given it “hold” recommendations. None has recommended a “sell.”
AES Missed Revenue 3Q15 Estimate, Stock Fell 8.7%
AES (AES) reported its 3Q15 earnings on November 5, 2015, posting revenue of $3.7 billion, lower than analysts’ expectation of $5.4 billion. It was 16.2% lower than 3Q14 revenue of $4.4 billion.
These US Utilities Are Trading at Towering Valuations
Dominion Energy’s (D) five-year average valuation multiple is around 14x, while the industry average is near 10x.
NEE, DUK, SO, and D: Analysts’ Views and Target Prices
Analysts expect an upside potential of almost 10% from NextEra Energy (NEE) stock based on the median target price of $186.1.
SPY Rose as Federal Reserve’s Rate Hike Met Market Expectations
Except for the energy sector and the material sector, all the component sectors of SPY rose on the release of the FOMC statement about its rate hike decision.
Dominion Midstream: Top Midstream Loser on Friday, July 24
Dominion Midstream Partners (DM) was the top loser among midstream MLPs at the end of trading on Friday, July 24. It fell 3.05%.
Why NextEra Energy Seems Attractive Right Now
According to Wall Street analysts, the top constituent of the S&P 500 Utilities Index, NextEra Energy (NEE), has a price target of $149.08 against its current market price of $141.07.
Utilities Debt: A Growth Driver or a Risk Alert?
Utilities borrowed heavily in the post-financial crisis in order to take advantage of the near-zero interest rates. As a result, the leverage of utilities increased significantly
Moody’s Downgrades Could Fuel a Fall in Utilities
Citing negative impacts of lower taxes, rating agency Moody’s downgraded 25 US regulated utilities on January 19, 2018.
An Overview of US LNG Production and Exports
Investors may be seeing a lot of reports about rising US LNG (liquefied natural gas) exports. Let’s review the basics of LNG.
How Do Analysts View Dominion Resources’s Dim Outlook for 2017?
Analysts expect a 9.2% rise in Dominion Resources (D) over the next year.
What’s in Store for Dominion Energy Stock?
Dominion Energy (D), one of the laggards among top utilities this year, seemed strong lately and is currently trading close to an eight-month high.
How Analysts See Dominion Resources ahead of Its 4Q16 Earnings
Of the 21 analysts tracking Dominion Resources on January 20, 2017, four recommended it as a “strong buy,” while three recommended it as a “buy.”
Would You Buy AES Stock at Its Current Valuation?
On June 23, 2017, AES stock was trading at an EV-to-EBITDA ratio of 8.2x, as compared to its five-year historical average of ~7.5x.
NEE, SO, DUK, D: Where Top SPX Utility Stocks Might Go
According to Wall Street analysts’ consensus, NextEra Energy (NEE) has an estimated gain of ~6%—compared to its mean target price of $155.57.
Dominion Energy’s Target Prices and Growth Outlook
Dominion Energy (D) has a target price of $79.31—compared to its current market price of $77.86, which implies an estimated gain of 2%.
A Look at Dominion Resources’s Price Targets and Growth Outlook
Of the 22 analysts tracking Dominion Resources on February 23, 2017, four recommended it as a “strong buy,” while four recommended it as a “buy.”
Southern Company Stock Surges after Its 2Q17 Earnings
At 4.8%, Southern Company is currently the highest-yielding utility among the top utilities in the sector.
Dominion Energy or Sempra Energy: Which Could Be Stronger?
Dominion Energy (D) announced its agreement to buy SCANA (SCG) on January 3, 2017. The deal is expected to accelerate Dominion Energy’s earnings growth.
Which Utility Will Pay Higher Dividends in 2017?
NextEra Energy (NEE) paid annual dividends of $3.48 per share in 2016, while Southern Company (SO) paid $2.22 per share last year.
Why Duke Energy is the largest electric utility in the US
Duke Energy Corporation (DUK) is a heavyweight in the U.S. electric utilities industry. It mainly operates in the U.S. and Latin America. In 2013, its operations had $24.6 billion in revenue.
These S&P 500 Utility Stocks Offer the Most Potential Upside
NRG Energy (NRG), the leading merchant power player stock and one of the smallest components of the S&P 500 Utilities Index (XLU), has a mean price target of $36.50 against its current market price of $31.20.
NEE, DUK, SO, and D: Comparing Top Utilities’ Total Returns
NextEra Energy (NEE) beat its peers in terms of returns in the last few years. NextEra Energy returned 14% in 2018.
Understanding Duke Energy’s Price Target
Analysts estimate that Duke Energy has a one-year price target of $80.4, which implies an estimated upside of ~3.5% from its current market price of $77.75.
D, DUK, NEE, and SO: Top Utilities’ Dividends
Dominion Resources (D) paid annual dividends of $2.80 in 2016. Duke Energy (DUK) paid dividends of $3.36 per share last year.
XLU: Discussing Utilities’ Concerning Valuation
The Utilities Select Sector SPDR ETF (XLU) trades at a dividend yield of 3.5%—significantly higher than the broader markets’ yield of 2%.
NEE, DUK, D, and SO: How Have the Top Utilities Fared This Year?
As we approach 2018, the Utilities Select Sector SPDR ETF (XLU) has risen nearly 8%, while the SPDR S&P 500 ETF (SPX-INDEX) (SPY) has risen almost 20%.
Analyzing NextEra Energy’s Dividend Yield
In 1Q17, NextEra Energy paid dividends of $0.98 per share, which implies annualized dividends of $3.93 per share. Its dividends rose 13% compared to 4Q16.
Which Utilities Are Most Exposed to Troubled Nuclear Generation?
US nuclear generation accounts for 9% of total US capacity. Its share of total power generation last year accounted for nearly 20%.
Top Utilities’ Historical Dividend Growth
On average, utilities increased their dividend per share ~4% compounded annually in the last five years.
How Dominion Energy Stock Is Valued versus Peers
Dominion Energy (D) stock currently looks attractively valued. It’s trading at a forward PE of 17.5x against its five-year historical average PE of 24x.
Utilities Continued to Rise, Trade War Fears Hit the Markets
The Utilities Select Sector SPR ETF (XLU) continued its uptrend for the sixth consecutive day and rose 1.7% on June 25.
How Analysts Currently Rate Dominion Energy Stock
Based on analysts’ 12-month mean target price of $72.10, Dominion Energy (D) stock has an upside of ~12% to its current market price of $64.
What Could Drive Dominion Energy’s Dividend Growth Going Forward?
Dominion Energy (D) is on the final step of completing its acquisition of SCANA Corporation (SCG).
Dominion Resources’ 4Q16 Revenues Rose 20% but Stock Fell 6%
Dominion Resources (D) reported its 4Q16 and fiscal 2016 results on February 1, 2017. The Virginia-based power and energy company reported ~$3.1 billion in revenues, ~20% higher than its 4Q15 revenues.
Must-know: US power sector and its indicators
The power sector is the backbone of any economy. All of the other industries depend on it. In the U.S., the power utilities business is characterized by steady dividends and stable earnings.
Analysts Turned Positive on Southern Company Stock
According to Wall Street analysts’ consensus, Southern Company (SO) stock has a target price of $51.41—compared to its current price of $48.94.
Utilities Beat Broader Markets Last Week
The broader market sell-off intensified last week. Most of the major indices recorded the worst week in a decade.
What Dominion Energy’s Implied Volatility Trends Suggest
On November 27, implied volatility of Dominion Energy (D) stock was at 16%, close to its 15-day average implied volatility.
Analyzing Dominion Energy’s Moving Averages
Dominion Energy (D) stock is currently trading 6% and 5% lower than its 50-day and 200-day moving average levels, respectively.
What Moved Utilities Last Week?
Rate cut expectations continued to drive broader markets last week. The utilities sector fell 0.4%, while SPY fell 1.2% for the week ending July 19.
NEE, SO, DUK, or D: Which Utility Has the Most Alarming Leverage?
Utilities’ (XLU) leverages are very important metrics to evaluate, especially now that interest rates are steadily rising.
Analyzing Dominion Energy’s Valuation and Dividends
Currently, Dominion Energy stock is trading at an EV-to-EBITDA valuation multiple of 14.5x, while utilities at large have a valuation multiple near 10.0x.
How Returns Impact Utility Stocks’ Implied Volatility
NRG Energy (NRG) rose 5.1% on a YTD (year-to-date) basis. It has the highest implied volatility of all the utility companies that make up XLU.
AEP Aims for Average Dividend Growth
As we discussed earlier, American Electric Power (AEP) has increased its dividends in line with the industry average in the last five years.
Returns of Utilities with High and Low Implied Volatilities
NextEra Energy (NEE) has the lowest implied volatility of all the utility companies that are part of XLU. Its YTD returns are 20.5%.
NEE, DUK, D, and SO: Analysts’ Views and Target Prices
NextEra Energy stock offers a potential upside of almost 3% based on the median target price of $188.5 and its current price of $183.0.
What Do Analysts Expect from Southern Company Stock?
Analysts have given Southern Company (SO) stock a mean price target of $51.53, compared with its current market price of $49.87.
Analyzing Top Utilities’ Free Cash Flow Trends
The top four utilities have failed to generate positive free cash flows in the last few years.
Analysts’ Views on NextEra Energy after 3Q17 Earnings
According to Wall Street analysts’ estimates, NextEra Energy (NEE) has a mean price target of $156.80 against its current market price of $153.39.
Not All Utility Stocks Are Overpriced
Utility stocks seem overvalued. Utilities have reached record levels. They have been trading at inflated valuations for months.
Analyzing Dominion Energy’s Dividend Profile
Dominion Energy (D) stock has been on a notable downtrend in the last few months. It has corrected more than 12% year to date.
Must-know: Duke Energy’s operating segments
Duke Energy (DUK) operates in three business segments—Regulated Utilities, Commercial Power, and International Energy. Regulated utilities are responsible for most of Duke Energy’s retail sales.
NextEra or Dominion: Which Has a Better Dividend Profile?
NextEra Energy is looking at an estimated gain of 6% through next year. It has a mean price $137.67—compared to its current market price of $129.89.
A Closer Look at Top Utilities’ Earnings Profiles
NextEra Energy is the fastest growing utility among the top utility stocks. It has increased its earnings per share by more than 8% compounded annually in the last ten years.
FE, D, EXC, or ETR: Which Utility Stock Stung Investors?
Exelon (EXC) stock has corrected nearly 2% in the last year. Including dividends, its returns have come in at ~3%.
Here’s What Drove Xcel Energy’s 4Q17 Revenues
Xcel Energy (XEL), a utility company based in Minneapolis, Minnesota, reported its 4Q17 and 2017 earnings on February 7, 2018. Its revenues of $2.8 billion were similar to 4Q16.
Cheaper Gas Poses Serious Risk to US Nuclear Power Generation
Exelon (EXC), the largest nuclear power generator in the US, has warned it could close its Three Mile Island nuclear plant in Pennsylvania if it doesn’t receive state aid.
Why NRG Energy’s Implied Volatility Is Elevated
On January 18, 2017, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
What Are Top Utilities’ Current Valuations?
Currently, broader utilities are trading at an EV-to-EBITDA valuation multiple of 10.7x. Their five-year historical average valuation is ~9x.
Does Dominion Energy’s Deal with SCANA Look Uncertain?
Dominion Energy agreed to buy troubled SCANA for $7.9 billion in a stock-for-stock deal in January this year.
Analyzing Utilities’ Recent Dividends and Expected Increases
Xcel Energy (XEL) paid total dividends of $1.36 per share in 2016. It was more than a 6% increase compared to its dividends in 2015.
Looking at Xcel Energy’s Future Dividend Growth
Expected dividend growth As discussed in the previous part, in the last five years, Xcel Energy (XEL) has increased its per-share dividends more than the industry has. It aims for similar dividend growth going forward, targeting annual ~6% per-share dividend growth for the next few years. Regulated utilities Duke Energy (DUK) and Southern Company (SO) are […]
Valero Energy Partners: Top Midstream MLP Gainer on October 8
Valero Energy Partners (VLP) was the top gainer among midstream MLPs at the end of trading on Thursday, October 8. It rose 4.6% yesterday.
Historical Dividend Growth of 10 Top-Yielding SPX Utilities
FirstEnergy (FE), one of the leading competitive utilities, has not increased its dividends since 1Q14.
Dominion Energy Has Attractive Dividend Profile
Dominion Energy (D), the third largest utility stock by market cap in the country, is currently trading at a dividend yield of 4.5%, notably higher than the broader utilities’ average.
How Do Analysts View SCANA Stock in April 2018?
According to Wall Street analysts’ estimates, SCANA (SCG) stock is expected to rise approximately 9% over the next 12 months.
Analyzing Dominion Resources’s Current Valuations
Dominion Resources (D) seems to be trading at a premium compared to the industry average and its historical average. It’s currently trading at an EV-to-EBITDA multiple of 15x.
Utilities’ Premium Dividend Yield
Investors usually prefer utilities due to their ability to pay higher dividends. Currently, utilities are trading at an average dividend yield of 3.5%.
Why gas price is connected to liquefied natural gas exports
Increases in LNG trade would help bring world natural gas prices closer together.
What’s Next for Dominion Resources Stock?
Dominion Resources (D) gained 12% in 2016, while the Utilities Select Sector SPDR (XLU) also managed to gain by about the same levels.
How Are Top Utility Stocks Valued Right Now?
The biggest constituent of the SPX Utilities, NextEra Energy (NEE) is trading at a valuation multiple beyond 14x—higher than its historical average.
Why Wall Street Looks Positive about NextEra Energy Stock
Among the total 17 Wall Street analysts currently covering NextEra Energy (NEE), five recommend the stock as a “strong buy” while ten recommend it as a “buy.”
Where Dominion Energy Stock Might Go from Here
Dominion Energy (D) stock continues to look weak in the near future considering its moving averages.
These Top Utilities Received Target Price Raises Last Week
Almost all utility stocks currently offer unattractive upside potentials due to their recent rallies.
Exelon Offers a Decent Potential Upside from Here
The stock of Exelon Corporation (EXC), the largest hybrid utility and the largest utility by revenue, has a mean price target of $43.2.
Top Utilities Fell, Treasury Yields Rose Last Week
The benchmark ten-year Treasury yields continued to rise last week due to better-than-expected economic data.
Utilities’ Total Returns: Your Key Update
Dominion Energy has returned 18% in the past year, while the Utilities Select Sector SPDR ETF (XLU) has returned 14% during the same period.
Southern Company and Duke Energy: A Dividend Yield Showdown?
Utility giants SO and DUK have healthy dividend profiles and premium yields. But to know which one is superior, we have to compare dividend profiles.
Utility Stocks: Analyzing Returns and Implied Volatilities
PPL rose the least in the past year among the list of low implied volatility utility stocks. It announced its 4Q16 financial results on February 1.
Falling gas prices are negative for unregulated power players
Natural gas prices fell by 9.9% for the week ending on January 30, 2015. Natural gas futures closed at $2.69 per MMBtu on Friday.
Southern Company: Analysts’ Recommendations and Target Prices
According to Wall Street analysts’ consensus, Southern Company (SO) stock has a potential gain of nearly 8% against its current market price of $47.28.
MLPs’ Rating Updates during the Week Ending November 3
Dominion Energy Midstream Partners, the midstream MLP subsidiary of Dominion Energy, was downgraded last week by Mizuho and RBC Capital Markets.
Dominion Midstream: Top Midstream MLP Loser on October 21
Dominion Midstream Partners (DM) was the top loser among midstream MLPs at the end of trading on Wednesday, October 21. It fell 5.51%.