- Dominion Energy's operating EPS payout ratio is positioned to be 65.5% this year based on its midpoint forecast, which is a sustainable payout ratio for the long term.
- Dominion Energy has grown its first-half operating EPS 11.5% year-over-year.
- Dominion Energy's strong performance year-to-date led it to reiterate guidance of $3.70-$4.00 in operating EPS for the year, which would be a 4.5-13% year-over-year growth rate.
- Based on my inputs into the DCF model and DDM, I estimate shares of Dominion Energy are trading at a 2% discount to fair value.
- Dominion Energy's 3.2% yield, 6-7% annual earnings growth potential, and 0.2% annual valuation multiple expansion should allow the company to generate 9-10% annual total returns in the next decade.
For further details see:
Why I'm Adding To My Position In Dominion Energy