Dominion Stock Rises 31.9% Year to Date: What Should Investors Do Now?

Core Viewpoint - Dominion Energy's shares have increased by 31.9% year to date, outperforming the Zacks Utility – Electric Power industry's growth of 24.1% [1] Investment and Infrastructure - Dominion Energy plans to invest $43 billion through 2029 to enhance its infrastructure and reduce outages [2][11] - The company aims for net-zero carbon and methane emissions from its electric generation and natural gas infrastructure by 2050 [2] Performance and Growth - Dominion Energy's shares are trading above the 50-day and 200-day simple moving averages, indicating a bullish trend [5] - The company is experiencing commercial load growth driven by demand from data centers, connecting 14 new data centers year to date and expecting to connect an additional 16 in 2024 [12] Strategic Initiatives - The company has divested some merchant generation facilities to focus on regulated assets, which will enhance operational stability [7] - Dominion Energy signed a Memorandum of Understanding with Amazon to explore Small Modular Reactor (SMR) nuclear development in Virginia [8][9] Financial Outlook - Dominion Energy expects its 2024 EPS to be in the range of $2.68-$2.83, a significant increase from $1.99 per share in 2023, indicating a year-over-year growth of 38.7% [14] - The current annual dividend is $2.67, with a dividend yield of 4.52%, outperforming the industry's yield of 3.18% [15] Valuation and Returns - Dominion Energy is currently valued at a premium compared to its industry on a forward 12-month P/E basis [16] - The trailing 12-month return on equity (ROE) is 8.35%, lower than the industry average of 10.98%, indicating less efficient utilization of shareholders' funds [18] Summary - The company's systematic investment in clean energy production and grid strengthening is expected to provide reliable service to customers, with rising demand for clean energy acting as a tailwind [20]