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ED vs. D: Which Utility Stock Is the Better Long-Term Investment?
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Key Takeaways
ED and D are regulated utilities benefiting from rising demand, infrastructure upgrades and renewables.
D has a higher ROE and dividend yield, while both yield top the S&P 500's 1.38% yield.
D plans nearly $65B in 2026-2030 investments, while ED plans nearly $38B over the same period.
Companies operating in the Zacks Utility - Electric Power industry generate, transmit and distribute electricity to millions of customers across the United States. Their regulated business model provides stable earnings through cost recovery and predictable returns, while growing electricity demand supports long-term earnings growth. At the same time, utilities are increasing electricity generation from cleaner energy sources to meet rising demand for clean electricity and reduce emissions.
Electricity demand in the United States is increasing due to higher residential consumption, the reshoring of manufacturing and the rapid expansion of AI-based data centers. To meet this growing demand, utilities are investing in renewable energy projects, modernizing the electric grid and expanding transmission and distribution infrastructure to improve reliability and support future growth.
Amid the growing importance of electricity generation, transmission and distribution companies, let us compare Consolidated Edison (ED - Free Report) and Dominion Energy (D - Free Report) . Both companies are regulated utilities benefiting from rising electricity demand, supported by investments in infrastructure, grid modernization and renewable energy, with carbon neutrality targets for 2050.
Consolidated Edison is benefiting from increasing electricity demand driven by the electrification of transportation and buildings, supporting steady earnings growth. The company is making strategic capital investments in infrastructure development, grid modernization and renewable energy expansion, strengthening its energy transition strategy while supporting long-term earnings and regulated growth.
Dominion Energy is benefiting from rising demand for clean electricity driven by expanding data centers and customer growth, supporting sustained revenues and earnings growth. The company's disciplined capital investment strategy supports grid modernization, infrastructure upgrades and renewable energy expansion, driving operational efficiency and long-term financial growth.
Consolidated Edison and Dominion Energy are two prominent regulated utilities. A comparison of their fundamentals reveals which company is better positioned for long-term investment.
D & ED’s Earnings Projections
The Zacks Consensus Estimate for ED’s earnings per share (EPS) is pegged at $6.09 for 2026 and $6.42 for 2027, suggesting year-over-year growth of 6.84% and 5.37%, respectively.
Image Source: Zacks Investment Research
On the other side, the Zacks Consensus Estimate for D’s EPS is pegged at $3.59 for 2026 and $3.81 for 2027, suggesting year-over-year growth of 4.97% and 6.10%, respectively.
Image Source: Zacks Investment Research
Return on Equity
Return on Equity (ROE) evaluates a company's ability to generate profits from shareholders' equity. A strong ROE indicates efficient capital management and greater value creation for shareholders.
Dominion’s current ROE is 9.63%, outperforming Consolidated Edison, which reports a lower ROE 8.34%. D utilizes shareholder capital more efficiently and generates higher profits, though both companies’ returns remain below the industry average of 11.21%.
Image Source: Zacks Investment Research
ED & D’s Dividend Yield
Utility companies often pay regular dividends to return a portion of their earnings to shareholders. A consistent dividend record signals stable cash generation and disciplined capital management, attracting income-oriented and long-term investors.
Currently, D's dividend yield is 3.83%, slightly higher than ED's 3.11%, offering investors stronger income potential. The dividend yields of both companies are higher than the S&P 500’s yield of 1.38%.
Capital Investment Plans
Utilities require substantial capital to build and maintain infrastructure while ensuring reliable service. Ongoing spending on renewable energy, energy storage, grid modernization and equipment upgrades supports long-term growth.
Dominion Energy aims to invest nearly $65 billion during the 2026-2030 period to support infrastructure development, accelerate clean energy deployment and drive sustained rate-base and long-term growth. Consolidated Edison plans to invest $6.6 billion in 2026 and nearly $38 billion during 2026-2030 to modernize and expand its electric, gas and steam infrastructure, enhancing service reliability and supporting long-term rate base growth.
Price Performance
Dominion shares have gained 21.3% in the past six months compared with Consolidated Edison’s growth of 13.0%.
Image Source: Zacks Investment Research
Summing Up
Consolidated Edison and Dominion Energy are benefiting from rising electricity demand, expanding customer bases, significant infrastructure investments and renewable energy expansion to serve millions of customers across the United States.
Dominion Energy’s superior return on equity, larger capital investment plan, higher dividend yield and stronger stock performance make it a more attractive choice in the utility sector.
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ED vs. D: Which Utility Stock Is the Better Long-Term Investment?
Key Takeaways
Companies operating in the Zacks Utility - Electric Power industry generate, transmit and distribute electricity to millions of customers across the United States. Their regulated business model provides stable earnings through cost recovery and predictable returns, while growing electricity demand supports long-term earnings growth. At the same time, utilities are increasing electricity generation from cleaner energy sources to meet rising demand for clean electricity and reduce emissions.
Electricity demand in the United States is increasing due to higher residential consumption, the reshoring of manufacturing and the rapid expansion of AI-based data centers. To meet this growing demand, utilities are investing in renewable energy projects, modernizing the electric grid and expanding transmission and distribution infrastructure to improve reliability and support future growth.
Amid the growing importance of electricity generation, transmission and distribution companies, let us compare Consolidated Edison (ED - Free Report) and Dominion Energy (D - Free Report) . Both companies are regulated utilities benefiting from rising electricity demand, supported by investments in infrastructure, grid modernization and renewable energy, with carbon neutrality targets for 2050.
Consolidated Edison is benefiting from increasing electricity demand driven by the electrification of transportation and buildings, supporting steady earnings growth. The company is making strategic capital investments in infrastructure development, grid modernization and renewable energy expansion, strengthening its energy transition strategy while supporting long-term earnings and regulated growth.
Dominion Energy is benefiting from rising demand for clean electricity driven by expanding data centers and customer growth, supporting sustained revenues and earnings growth. The company's disciplined capital investment strategy supports grid modernization, infrastructure upgrades and renewable energy expansion, driving operational efficiency and long-term financial growth.
Consolidated Edison and Dominion Energy are two prominent regulated utilities. A comparison of their fundamentals reveals which company is better positioned for long-term investment.
D & ED’s Earnings Projections
The Zacks Consensus Estimate for ED’s earnings per share (EPS) is pegged at $6.09 for 2026 and $6.42 for 2027, suggesting year-over-year growth of 6.84% and 5.37%, respectively.
Image Source: Zacks Investment Research
On the other side, the Zacks Consensus Estimate for D’s EPS is pegged at $3.59 for 2026 and $3.81 for 2027, suggesting year-over-year growth of 4.97% and 6.10%, respectively.
Image Source: Zacks Investment Research
Return on Equity
Return on Equity (ROE) evaluates a company's ability to generate profits from shareholders' equity. A strong ROE indicates efficient capital management and greater value creation for shareholders.
Dominion’s current ROE is 9.63%, outperforming Consolidated Edison, which reports a lower ROE 8.34%. D utilizes shareholder capital more efficiently and generates higher profits, though both companies’ returns remain below the industry average of 11.21%.
Image Source: Zacks Investment Research
ED & D’s Dividend Yield
Utility companies often pay regular dividends to return a portion of their earnings to shareholders. A consistent dividend record signals stable cash generation and disciplined capital management, attracting income-oriented and long-term investors.
Currently, D's dividend yield is 3.83%, slightly higher than ED's 3.11%, offering investors stronger income potential. The dividend yields of both companies are higher than the S&P 500’s yield of 1.38%.
Capital Investment Plans
Utilities require substantial capital to build and maintain infrastructure while ensuring reliable service. Ongoing spending on renewable energy, energy storage, grid modernization and equipment upgrades supports long-term growth.
Dominion Energy aims to invest nearly $65 billion during the 2026-2030 period to support infrastructure development, accelerate clean energy deployment and drive sustained rate-base and long-term growth. Consolidated Edison plans to invest $6.6 billion in 2026 and nearly $38 billion during 2026-2030 to modernize and expand its electric, gas and steam infrastructure, enhancing service reliability and supporting long-term rate base growth.
Price Performance
Dominion shares have gained 21.3% in the past six months compared with Consolidated Edison’s growth of 13.0%.
Image Source: Zacks Investment Research
Summing Up
Consolidated Edison and Dominion Energy are benefiting from rising electricity demand, expanding customer bases, significant infrastructure investments and renewable energy expansion to serve millions of customers across the United States.
Dominion Energy’s superior return on equity, larger capital investment plan, higher dividend yield and stronger stock performance make it a more attractive choice in the utility sector.
Based on the above discussion, Dominion Energy currently has an edge over Consolidated Edison, though both presently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.