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Reasons to Give Dominion Energy a Spot in Your Portfolio Right Now

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Key Takeaways

  • D's 2025 EPS estimate rose to $3.40, with revenues expected to grow 7.62% from the prior year.
  • Dominion Energy plans nearly $50B in infrastructure investments through 2029 to boost reliability.
  • Dominion Energy has delivered four straight earnings beats, delivering an average surprise of 12.72%.

Dominion Energy, Inc. (D - Free Report) focuses on strategic long-term investment and infrastructure expansion, which will strengthen its electric and natural gas systems and improve service reliability. The company is strategically adding renewable assets to its generation portfolio to achieve carbon neutrality by 2050. Given its strong growth and better future expansion plan, Dominion Energy makes for a solid investment option in the Zacks Utility-Electric Power industry.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.

D’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.30% to $3.40 in the past 60 days.

The Zacks Consensus Estimate for 2025 revenues is pegged at $15.56 billion, which indicates growth of 7.62% from the 2024 reported figure.

D’s long-term (three to five years) earnings growth rate is 10.26%.

D’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 12.72%.

Dominion Energy’s Capital Return Program

Dominion Energy has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 66.75 cents per share, resulting in an annualized dividend of $2.67. D’s current dividend yield is 4.34%, better than the Zacks S&P 500 composite's average of 1.11%.

Dominion Energy’s Capital Investment and Expansion Plan

Dominion Energy has a structured and systematic long-term capital expenditure plan to strengthen and expand its infrastructure. Positioning itself for long-term leadership, the company has committed to a nearly $50 billion infrastructure investment plan through 2029, starting with $12.1 billion in 2025.

These investments support the company’s long-term objective of expanding battery storage, solar, hydro, and both offshore and onshore wind projects by 2036, and increasing renewable energy capacity by more than 15% per year, on average, over the next 15 years.

D’s Return on Equity

Return on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, D’s ROE is 9.60%, higher than the sector average of 9.38%.

D’s Solvency Ratio

Dominion Energy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.6. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.

D’s Share Price Performance

Over the past six months, D’s shares have risen 9.2%, but lagged behind the industry’s growth of 11.9%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Entergy Corporation (ETR - Free Report) , Edison International (EIX - Free Report) and CenterPoint Energy, Inc. (CNP - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ETR’s long-term earnings growth rate is 10.21%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.90, which suggests year-over-year growth of 6.85%. 

EIX’s long-term earnings growth rate is 10.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.10, which suggests year-over-year growth of 23.73%. 

CNP’s long-term earnings growth rate is 8.86%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.77, which suggests year-over-year growth of 9.26%.

 

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