SCG - Dominion: Reduced Uncertainty And A Dividend Hike Make It A Buy
After months of uncertainty and two changes to the offer to win over South Carolina regulators, Dominion Energy's (D) acquisition of SCANA (SCG) has closed. The uncertainty surrounding MLP tax advantages for Dominion Midstream Partners (DM) is close to being resolved with an all-stock deal to buy out the units it doesn't own. Only issues with the Atlantic Coast Pipeline remain unresolved. This reduced uncertainty makes it easier to determine how safe the dividend is. Coupled with the recent 9.9% increase in the dividend, this increased certainty in cash flow makes the current price of