August 08, 2025 a 07:31 am
📊 Dividend Analysis - Dominion Energy, Inc.
Dominion Energy, Inc. (Symbol: D) presents a compelling dividend profile with its substantial history of dividend payouts. The company's consistent commitment to shareholder returns, marked by a 42-year history of dividend payments, underscores its stability in the energy sector. However, a current high payout ratio and recent challenges influencing growth indicate potential volatility. Investors should consider this balanced view when assessing Dominion Energy's dividend prospects.
🗣️ Overview
Dominion Energy operates within the Utilities sector, a space known for its stable cash flows and regular dividend distributions. With a current dividend yield of 4.32%, the company provides attractive income potential, although its recent history of dividend cuts cannot be overlooked. Below is the current overview of the company's dividend-related metrics:
| Metric | Details |
|---|---|
| Sector | Utilities |
| Dividend Yield | 4.32% |
| Current Dividend per Share | 2.67 USD |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
📉 Dividend History
Dominion Energy has a robust history of dividend payments reflecting a long-standing commitment to returning capital to shareholders. An uninterrupted 42-year record highlights its reliability, although recent trends show adjustments reflecting industry pressures. Historical dividends indicate the firm's adaptation strategies amidst evolving financial landscapes.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.00 |
| 2024 | 2.67 |
| 2023 | 2.67 |
| 2022 | 2.67 |
| 2021 | 2.52 |
📈 Dividend Growth
Dividend growth is a critical indicator of a company's profitability and financial health. It demonstrates the firm's ability to increase distributions to shareholders over time. Dominion Energy's growth rates suggest challenges, with a 3-year growth at 1.95% and a 5-year decline indicating a -6.16% trend. This performance suggests a need for strategic focus on revenue enhancement and cost management.
| Time Frame | Growth |
|---|---|
| 3 years | 1.95% |
| 5 years | -6.16% |
The average dividend growth is -6.16% over 5 years. This shows a decline in dividend growth, posing potential concerns for prospective income-focused investors.
✅ Payout Ratio
The payout ratio is crucial for understanding how sustainable a company's dividend payments are relative to its earnings and cash flow. A consistently high payout ratio can signal risk.
| Key Figure | Ratio |
|---|---|
| EPS-based | 99.55% |
| Free Cash Flow-based | -57.17% |
Dominion Energy exhibits a concerning EPS payout ratio of 99.55%, indicating nearly all profits are distributed as dividends. The negative FCF payout ratio also suggests operational cash flow challenges, potentially impacting long-term dividend stability.
💵 Cashflow & Capital Efficiency
Cash flow analysis is vital for evaluating how efficiently a company manages its financial resources. It directly affects the ability to sustain dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -15.89% | -9.69% | -7.70% |
| Earnings Yield | 4.70% | 5.28% | 2.61% |
| CAPEX to Operating Cash Flow | 243.08% | 155.74% | 205.16% |
| Stock-based Compensation to Revenue | 0% | 0.31% | 0.26% |
| Free Cash Flow / Operating Cash Flow Ratio | -143.08% | -55.74% | -105.16% |
The data reveals significant capital efficiency challenges, reflected in negative FCF yields and high CAPEX ratios. Managing these effectively is critical for sustaining future dividends.
⚠️ Balance Sheet & Leverage Analysis
Financial leverage insights help evaluate a company's long-term viability and risk profile. High leverage can amplify risks in fluctuating market conditions.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.53 | 1.61 | 1.49 |
| Debt-to-Assets | 0.41 | 0.41 | 0.39 |
| Debt-to-Capital | 0.61 | 0.62 | 0.60 |
| Net Debt to EBITDA | 6.18 | 6.46 | 6.45 |
| Current Ratio | 0.71 | 1.04 | 0.73 |
| Quick Ratio | 0.52 | 0.97 | 0.62 |
| Financial Leverage | 3.76 | 3.96 | 3.79 |
Dominion Energy's increased financial leverage suggests potential distress under adverse economic conditions. Maintaining a balanced leverage profile is essential for stability.
📈 Fundamental Strength & Profitability
Profitability metrics are critical for assessing operational efficiency and strategic monetization success.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 7.79% | 7.24% | 4.78% |
| Return on Assets | 2.07% | 1.83% | 1.26% |
| Margins: Net | 14.69% | 13.85% | 9.48% |
| EBIT Margin | 28.14% | 25.67% | 23.39% |
| EBITDA Margin | 46.39% | 47.40% | 45.72% |
| Gross Margin | 47.87% | 48.34% | 45.75% |
| R&D to Revenue | 0% | 0% | 0% |
Despite showing adequate profitability and margins, the absence of R&D could limit long-term innovation and profitability growth.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 3 | |
| Dividend Growth | 2 | |
| Payout Ratio | 2 | |
| Financial Stability | 2 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Overall Score: 22/40
🗣️ Rating
Dominion Energy, Inc. provides a solid dividend yield bolstered by a long history of payouts, making it attractive for income-focused investors. However, high leverage and recent negative free cash flow yield indicators necessitate a cautious approach. Prospective investors should weigh the prospects against the industry's stability and Dominion's strategic responses, achieving an overall score that reflects moderate investment desirability for dividend seekers.