D - Here's Why This High-Yield Dividend Stock's Earnings Will Look Much Better Soon
2023-12-03 07:25:00 ET
Dominion Energy (NYSE: D) has a 5.7% dividend yield, well above the market average of around 1.5% and the average utility yield of 3.6%, using Vanguard Utilities ETF as a proxy. But there's a reason for that relatively high yield. Here's what's going on and why generally accepted accounting principles ( GAAP ) are making things worse right now.
Dominion Energy has been simplifying its business for well over a decade. It started with a move away from oil production. Then, the giant U.S. utility decided it would get out of the midstream sector, selling a material pipeline business to Berkshire Hathaway . That move, which occurred in 2020, was accompanied by a dividend cut, given the scale of the business being sold.
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Here's Why This High-Yield Dividend Stock's Earnings Will Look Much Better Soon