Dominion Energy(US:D) 247Wallst·2025-12-18 13:46Core Viewpoint - The S&P 500 utilities sector has experienced significant gains in 2025, but a correction may be on the horizon as the market approaches its third consecutive year of double-digit gains, presenting a potential opportunity for investors to acquire top utility stocks [1][2]. Industry Overview - The utility sector is expected to perform better than high-flying technology stocks, particularly in the context of rising demand driven by AI and data center growth, making high-yielding utilities an attractive option for cautious investors seeking passive income [2][3]. - Utilities are among the most recession-resistant sectors, as the demand for power remains constant regardless of economic conditions [3]. Company Highlights - Dominion Energy: Offers a 4.60% dividend and serves approximately 7 million customers across Virginia and North Carolina, focusing on regulated electricity and natural gas services [6][8]. - Duke Energy: Provides a 3.67% dividend and operates in the Carolinas, Florida, and the Midwest, generating and distributing electricity while investing in renewable natural gas projects [9][10]. - Exelon: The largest electric parent company in the U.S. by revenue, Exelon pays a 3.67% dividend and is involved in energy distribution and transmission across the U.S. and Canada [11][12]. - Southern Company: Serves 8.8 million customers with a 3.45% dividend, focusing on power generation and natural gas distribution across several states [15][16]. Investment Rationale - Dividend stocks have historically contributed significantly to total returns, with sustainable dividend income and potential capital appreciation being crucial for investors [5]. - The utility sector's stability and consistent demand make it a favorable choice for investors looking for reliable income streams amidst market volatility [2][3].