- The electric and gas utility had an operating EPS payout ratio of 65.3% in 2021 and this will decrease to 65.1% in 2022.
- Dominion Energy's revenue was down just 0.1% in 2021 while its operating EPS surged 9% higher year-over-year.
- The company's balance sheet is strong with its pension program funded 110% in 2021.
- Based on my inputs into the dividend discount model and discounted cash flows model, Dominion Energy is trading at fair value.
- Until there is more clarity with inflation trends and the Federal Reserve's rate hike ambitions, I rate the stock a hold.
For further details see:
Dominion Energy: A Fairly Valued Dividend Stock