Our analysis is based on comparing Dominion Energy, Inc. with the following peers – SCANA Corporation, CenterPoint Energy, Inc., Ameren Corporation, Duke Energy Corporation, Exelon Corporation, Entergy Corporation, CMS Energy Corporation, FirstEnergy Corp., NiSource Inc and Sempra Energy (SCG-US, CNP-US, AEE-US, DUK-US, EXC-US, ETR-US, CMS-US, FE-US, NI-US and SRE-US).
Dominion Energy, Inc.’s dividend yield is 4.47 percent and its dividend payout is 79.97 percent. This compares to a peer median dividend yield of 3.56 percent and a payout level of 60.73 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 25 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), D-US paid a medium quality dividend, which represents a yield of 3.53% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were medium quality and 1 was low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to March 31, 2017), D-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.41x), investing cash flow (coverage of -6.09x), issuance cash flow (coverage of 4.84x) and twelve-month prior cash (coverage of 0.12x), for a total dividend coverage of 1.27x.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||4.05||3.46||3.11||3.81||3.59||4.47|
|Dividend Payout (%)||398.11||76.79||107.14||80.94||81.4||79.97|
A complete list of metrics and analysis is available on the company page.
Dominion Energy, Inc. is an energy company. It supplies electricity and natural gas to homes, businesses and wholesale customers in the Eastern United States. The company operations also include a regulated interstate natural gas transmission pipeline and underground storage system in the Northeast, mid-Atlantic and Midwest states, an LNG import and storage facility in Maryland and regulated gas transportation and distribution operations in Ohio and West Virginia. Its non-regulated operations include merchant generation, energy marketing and price risk management activities and retail energy marketing operations. The company operates its business through three segments: Dominion Virginia Power, Dominion Generation and Dominion Energy. The Dominion Virginia Power segment is engaged in regulated electric distribution, regulated electric transmission and non-regulated retail energy marketing. The Dominion Generation segment is engaged in regulated electric fleet and merchant electric fleet. The Dominion Energy segment is engaged in gas transmission and storage, gas distribution and storage, LNG import and storage. Dominion Energy was founded by William W. Berry in 1983 and is headquartered in Richmond, VA.
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