November 27, 2025 a 11:31 am
📊 Dividend Analysis - Dominion Energy, Inc.
Dominion Energy, Inc. presents a robust dividend history with over 42 years of consistent payouts. Current yields are appealing, although recent growth has been flat. Prospective investors should consider overall financial stability and the payout's sustainability amid transition in the energy sector.
Overview
Dominion Energy operates in the utilities sector and currently offers a dividend yield of 4.27%. The current dividend per share stands at 2.67 USD, with a rich history of 42 years in dividend distributions. The last dividend cut was noted in 2021.
| Metric | Details |
|---|---|
| Sector | Utilities |
| Dividend Yield | 4.27% |
| Current Dividend Per Share | 2.67 USD |
| Dividend History | 42 years |
| Last Cut/Suspension | 2021 |
Dividend History
Dominion Energy has maintained a consistent dividend payment history. Recent payments have been stable, indicating reliability. This historical consistency is crucial for dividend-seeking investors.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.67 |
| 2024 | 2.67 |
| 2023 | 2.67 |
| 2022 | 2.67 |
| 2021 | 2.52 |
Dividend Growth
The dividend growth over the last 3 years shows minimal growth, and a decline in the last 5 years. Consistent dividend policy adjustments are vital indicators of a company's commitment to shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 0.02% |
| 5 years | -6.16% |
The average dividend growth is -6.16% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
Understanding payout ratios helps gauge if dividends are sustainable relative to earnings and cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 97.32% |
| Free Cash Flow-based | -148.81% |
The EPS payout ratio is 97.32%, suggesting potential risks of unsustainability, while the negative FCF-based ratio indicates the dividend is not covered by free cash flow.
Cashflow & Capital Efficiency
Dominion Energy’s operational efficiency is under scrutiny with its negative free cash flow yield. A strong operating cash flow can bolster these figures.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | -8.03% | -9.69% | -16.39% |
| Earnings Yield | 2.61% | 5.28% | 4.70% |
| CAPEX to Operating Cash Flow | 2.10 | 1.56 | 2.48 |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | -109.68% | -55.74% | -147.65% |
The negative free cash flow ratio indicates potential challenges in cash generation from operations, impacting capital efficiency and funding capabilities.
Balance Sheet & Leverage Analysis
Leverage measures like Debt-to-Equity offer insights on financial health. Here, Dominion Energy must manage its leverage to maintain ratings.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 1.49 | 1.61 | 1.53 |
| Debt-to-Assets | 0.39 | 0.41 | 0.41 |
| Debt-to-Capital | 0.60 | 0.62 | 0.61 |
| Net Debt to EBITDA | 6.45 | 6.46 | 6.18 |
| Current Ratio | 0.73 | 1.04 | 0.71 |
| Quick Ratio | 0.62 | 0.97 | 0.52 |
| Financial Leverage | 3.79 | 3.96 | 3.76 |
Dominion's leverage ratios indicate a high level of indebtedness, raising concerns about their ability to manage debt amidst industry changes.
Fundamental Strength & Profitability
Key profitability indicators and returns are crucial for assessing overall operational success and investor returns.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 4.78% | 7.24% | 7.79% |
| Return on Assets | 1.26% | 1.83% | 2.07% |
| Return on Invested Capital | 1.16% | 2.82% | 2.86% |
| Net Margin | 9.48% | 13.85% | 14.69% |
| EBIT Margin | 23.39% | 25.67% | 28.14% |
| EBITDA Margin | 45.72% | 47.40% | 46.39% |
| Gross Margin | 45.75% | 48.34% | 47.87% |
| R&D to Revenue | 0% | 0% | 0% |
The stable profit margins coupled with decent returns on equity and assets highlight Dominion's potential for profitability despite industry pressures.
Price Development
Dividend Scoring System
| Criterion | Score | Visual |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 3 | |
| Dividend Growth | 2 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 3 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 22/40
Rating
Dominion Energy showcases a dependable dividend yield and sustainability with a lengthy dividend history. However, the lack of meaningful dividend growth and high payout ratio reflect underlying financial pressures. The current environment poses challenges, but with strategic positioning, Dominion could maintain its dividends albeit at a constrained growth pace. Therefore, Dominion Energy is a suitable choice for income-seeking investors with a focus on dividend consistency.