Company Overview - Dominion Energy Inc. is a major energy company based in Richmond, VA, engaged in regulated and non-regulated electricity distribution, generation, and transmission businesses [11] - The company was founded in 1909 and also sells electricity at wholesale prices to rural electric cooperatives, municipalities, and through wholesale electricity markets [11] Investment Ratings - Dominion Energy holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating strong potential for investors [12] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 16.85, making it appealing to value investors [12] Earnings Estimates - For fiscal 2025, two analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $3.39 per share [12] - Dominion Energy has an average earnings surprise of +7.4%, suggesting a positive trend in earnings performance [12] Investment Recommendation - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Dominion Energy is recommended for investors looking for strong investment opportunities [13]

Company Performance - Dominion Energy's stock was down 1.14% at $56.55, trailing the S&P 500 which lost 0.4% [1] - Over the past month, shares of Dominion Energy gained 4.51%, while the Utilities sector lost 0.96% [1] Upcoming Earnings - Dominion Energy is set to announce its earnings on August 1, 2025, with expected earnings of $0.77 per share, indicating a year-over-year growth of 40% [2] - The consensus estimate for revenue is $3.69 billion, reflecting a 5.81% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of $3.39 per share and revenue of $15.37 billion, representing changes of +22.38% and +6.33% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Dominion Energy indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] Zacks Rank and Performance - Dominion Energy currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [6] - The Zacks Rank system has a strong track record, with 1 stocks generating an average annual return of +25% since 1988 [6] Valuation Metrics - Dominion Energy has a Forward P/E ratio of 16.87, which is below the industry average of 18.15 [7] - The company's PEG ratio is 1.24, significantly lower than the industry average PEG ratio of 2.64 [7] Industry Context - The Utility - Electric Power industry, part of the Utilities sector, has a Zacks Industry Rank of 94, placing it in the top 39% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

1. Dominion Energy Utility stocks tend to fare quite well during turbulent markets. It's easy to see why. Their businesses and revenue streams are largely immune to bad things that happen at the macroeconomic level. Many utilities are regulated monopolies, so they don't even have to worry about competitive threats. "Please fasten your seatbelts." Anyone who has flown frequently has probably heard those words before. It's what airline pilots and flight attendants tell passengers when the ride is about to get ...

Group 1 - The article emphasizes the importance of being selective in choosing well-managed companies that provide dividends, especially for income-focused investors [2] - It highlights the current favorable conditions for income investors, suggesting a focus on defensive stocks with a medium- to long-term investment horizon [2] - The service iREIT+HOYA Capital is presented as a premier option for income-focused investing, offering insights into sustainable portfolio income and diversification [1] Group 2 - The article does not provide specific financial data or performance metrics related to companies or sectors [4][5] - There is a mention of a beneficial long position in shares of specific companies, indicating a positive outlook on their performance [3]

Core Viewpoint - The utility sector is poised for significant growth due to a surge in electricity demand driven by advancements in artificial intelligence, data centers, and electric vehicles, with a projected increase in demand of 55% over the next 20 years compared to just 9% from 2000 to 2020 [3][4]. Industry Trends - Electricity demand grew by 9% from 2000 to 2020, but is expected to grow by 55% over the next two decades [3]. - The demand for electricity from AI and data centers is projected to increase by 300% in the next decade, while electric vehicles are expected to drive a staggering 9,000% increase in electricity demand by 2050 [4]. - By the middle of the century, electricity is projected to account for 32% of final energy demand, up from 21% [4]. Investment Opportunities - Vanguard Utilities Index Fund ETF (VPU) offers diversified exposure to the utility sector with a yield of approximately 2.8% [6]. - NextEra Energy (NEE) has a strong growth platform with a 10% annualized dividend increase over the past decade and a yield of around 3.2% [7][8]. - The Southern Company (SO) has recently started two nuclear reactors, enhancing its clean energy supply and yielding 3.2% [9]. - Duke Energy (DUK) focuses on regulated utility customer bases, with a dividend yield of about 3.5% [10]. - Dominion Energy (D) has a higher yield of 4.7% but has faced challenges with a dividend cut [11]. - Black Hills Corporation (BKH) has achieved Dividend King status with a yield of 4.8% and a growing customer base [12]. - Constellation Energy (CEG) operates the largest nuclear power fleet in the U.S. but has a lower yield of 0.5% [13]. - Brookfield Renewable offers a diversified clean energy investment with yields of 5.8% for the partnership class and 4.5% for the corporate class [14][15]. - Portland General Electric (POR) has a yield of 5.1% and operates in a region with potential for data centers despite wildfire risks [17]. - Eversource Energy (ES) focuses on regulated utility assets with a yield of approximately 4.7% [18]. Long-term Outlook - The trends driving electricity demand are expected to unfold over decades, presenting opportunities for long-term investors to build wealth as the demand growth story develops [19].

Market Overview - The S&P 500 index has reached a new all-time high, with the SPDR S&P 500 ETF Trust (SPY) up 5.3% in 2025 after hitting a 52-week low in April [1] - Technology stocks have driven the recent market rally, but utility stocks have also shown impressive gains, with the Utilities Select Sector SPDR Fund (XLU) up more than 7.7% this year [1] Utility Sector Insights - Utilities may not keep pace with technology stocks in a risk-on environment, but they offer steady income and lower volatility, appealing to certain investors [2] - NextEra Energy (NEE) has a strong business model with its regulated utility and renewable energy segments, despite facing potential cuts to renewable energy subsidies [3][4] - NextEra Energy's stock is projected to increase by 17%, with a current dividend yield of 3.16% [5] Company Profiles NextEra Energy - NextEra Energy serves over five million customers in Florida and is a major player in renewable energy generation [3][4] - The company is well-positioned to benefit from the growing electricity demand for AI data centers [5] American Electric Power (AEP) - AEP operates across 11 states, serving over 5.6 million customers, with 90% of its revenue from regulated operations, contributing to its stability [6][7] - AEP's stock has increased by 12.7% in 2025, with projected earnings growth of around 7% in the next 12 months and a dividend yield of 3.58% [9] Dominion Energy - Dominion Energy has undergone a transformation, with 90% of its revenue now from regulated utility operations, leading to a stock increase of 19.5% in the last 12 months [10][11] - The company has a refreshed dividend yield of 4.67% and is projected to have earnings growth of around 6% in the next 12 months [12]

Industry Overview - Nuclear energy is increasingly recognized as a vital solution for meeting the rising global electricity demand while facilitating the transition to cleaner energy sources, providing a reliable supply of clean energy unlike solar and wind [1] - The U.S. aims to expand its nuclear energy capacity from nearly 100 gigawatts (GW) in 2024 to 400 GW by 2050, supported by executive orders to modernize regulations and accelerate reactor approvals [2] - The International Energy Agency (IEA) projects annual investment in nuclear energy to exceed $150 billion by 2030, up from $65 billion, with installed nuclear capacity potentially surpassing 1,000 GW by 2050 [4] Investment Opportunities - Nuclear energy-related stocks, such as Entergy Corporation, Dominion Energy, and Constellation Energy Corporation, are becoming attractive investment options due to their stable output and growth potential [3] - Entergy Corporation's nuclear plants generate nearly 8 GW, accounting for about 27% of its total capacity, and the company plans to invest $37 billion from 2025 to 2029 to enhance its generation fleet and expand its zero-carbon portfolio [9][12] - Dominion Energy operates four nuclear power stations that produce nearly 40% of its total energy output, focusing on next-generation technologies like small modular reactors (SMRs) to meet future electricity demand [13][14] Company Strategies - Entergy is exploring next-generation nuclear technologies and has secured a permit for a new reactor site, aiming to partner with tech firms to address financial and regulatory challenges [10][11] - Dominion Energy is committed to achieving a net-zero carbon target by 2050, leveraging nuclear power to provide a consistent, emission-free energy foundation [15] - Constellation Energy, the largest nuclear power plant operator in the U.S., accounts for around 10% of the nation's clean energy production and is investing in expanding its nuclear capacity to meet rising demand [16][18] Market Demand - The demand for clean electricity is driven by industrial expansion, urbanization, rising temperatures, AI-powered data centers, and the adoption of electric vehicles, with nuclear power requiring significantly less land compared to other clean energy sources [5] - Tech companies like Meta and Amazon are increasingly turning to nuclear energy as a reliable, low-emission power source, entering long-term agreements with Entergy [11] - Constellation Energy has secured uranium supply contracts extending through the 2030s to ensure long-term fuel security amid geopolitical uncertainties [17]

Core Viewpoint - Geopolitical tensions and tariff uncertainties are prompting investors to seek safe dividend stocks, particularly in the utility sector, which is characterized by stable demand and regulated returns [1][4]. Investment Options - NextEra Energy, Black Hills, and Dominion Energy are highlighted as attractive utility stocks for investment, each with distinct characteristics and dividend profiles [2][7]. NextEra Energy - NextEra Energy is recognized for its strong dividend growth, having increased its dividend annually for over 30 years, with a 10% annualized increase over the past decade and a current yield of approximately 3.2% [9][11]. - The company’s core business is its regulated utility operation in Florida, complemented by a significant renewable power segment that contributes to its growth potential [10]. Black Hills - Black Hills operates regulated electric and natural gas assets across several states and is noted for its consistent dividend increases over more than five decades, offering a yield of 4.8% [12][13]. - The utility's customer base is growing at nearly double the rate of the U.S. population, indicating strong future growth prospects [12]. Dominion Energy - Dominion Energy presents a higher yield of 4.9%, but its dividend is currently not growing as the company focuses on restructuring and strengthening its balance sheet [14][15]. - The utility is positioned to benefit from significant industry trends, including its involvement in one of the largest data center markets and the development of a large offshore wind farm [14]. Summary of Investment Appeal - The three utilities—NextEra Energy for dividend growth, Black Hills for reliable dividends, and Dominion Energy as a turnaround story—offer diverse options for investors seeking stable income streams [16].

Market Overview - The current market environment is characterized by a significant amount of cash, approximately $7 trillion, held in money-market funds, which is expected to flow into dividend-paying stocks as rates decline [2][10] - Investors have shown a tendency to react to market fears, leading to fluctuations in cash holdings within money-market funds [3] Economic Concerns - The U.S. government's deficit is projected to reach $1.9 trillion for fiscal 2025, with an additional $2.8 trillion expected from the "Big Beautiful Bill" over the next decade, raising concerns about higher Treasury yields and interest rates [4] - This situation creates a potential "doom loop" where increasing debt leads to higher servicing costs, further exacerbating the deficit [4] Investment Opportunities - As interest rates fall, yields on money-market funds and Treasuries are expected to decrease, prompting investors to seek higher income from dividend stocks [10] - Three specific dividend-paying stocks are highlighted as potential beneficiaries of this cash flow: Nuveen Quality Municipal Income Fund (NAD), Dominion Energy (D), and Union Pacific (UNP) [10] Nuveen Quality Municipal Income Fund (NAD) - NAD is currently trading at a 4.9% discount to its net asset value (NAV), providing an opportunity to purchase municipal bonds at a lower price [11] - The fund offers an 8.1% dividend yield, which is tax-free for most Americans, making it an attractive investment [13] Dominion Energy (D) - Dominion Energy offers a dividend yield of 4.9% and is positioned to benefit from the growing demand for energy, particularly in data centers [14] - The stock has potential for recovery as it has resumed dividend hikes after a previous cut, and its forward price-to-earnings ratio of 16 is below its five-year average [15] Union Pacific (UNP) - Union Pacific has a lower yield of 2.4% but is considered to have upside potential due to ongoing trade discussions and tariff negotiations that could positively impact its operations [16][17] - The company has a "Dividend Magnet" effect, indicating that its dividend growth is overdue, which could attract investor interest as cash flows from money-market funds increase [18][19]

Moretus Research delivers state-of-the-art, buy-side quality equity research for serious investors seeking clarity, conviction, and alpha. Focused on U.S. public markets, Moretus applies a structured, repeatable framework to identify companies with durable business models, mispriced cash flow potential, and intelligent capital allocation. Built on institutional standards, Moretus Research combines rigorous fundamental analysis with a high-signal, judgment-driven process—eschewing noise, narrative, and overl ...