D - High-Voltage Value: Why Dominion Energy Looks Like A Shockingly Good Investment

2024-06-17 17:43:27 ET

Summary

• Dominion Energy, Inc. has struggled with a low total return over the past decade, but recent developments offer hope for growth.
• The rise in data centers, particularly in Virginia, provides a significant tailwind for Dominion Energy's long-term electricity demand.
• With a 5.4% dividend yield, strategic investments in offshore wind, and debt reduction efforts, Dominion Energy presents a compelling investment opportunity.

Introduction

It's time to talk about Dominion Energy, Inc. ( D ) , the struggling utility company with a horrible long-term total return in a sector that also failed to perform well.

Over the past decade, the Utilities Select Sector ETF ( XLU ) has returned just 127%, lagging the S&P 500 (SP500) by more than 100 points. Even worse, Dominion Energy returned just 12%. All of these numbers include reinvested dividends....

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