Thursday, April 12, 2018

Recent Buy - Dominion Energy, Inc. (D)


Tuesday April 10, I bought 20 shares of Dominion Energy, Inc. at $ 65.97 per share plus commission.


Dominion Energy, Inc. produces and transports energy in the United States. The company's Power Delivery segment engages in the regulated electric transmission and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. Its Power Generation segment is involved in the electricity generation activities through gas, coal, nuclear, oil, renewables, biomass, hydro, solar, and power purchase agreements; and related energy supply operations. It also comprises generation operations of the company's merchant fleet and energy marketing, and price risk management activities for its assets. The company's Gas Infrastructure segment engages in the regulated natural gas distribution, gas transmission pipeline and storage, liquefied natural gas, and nonregulated retail natural gas marketing operations, as well as natural gas gathering and processing activities. This segment serves residential, commercial, and industrial customers. As of December 31, 2017, the company's portfolio of assets included approximately 26,000 megawatts of generating capacity; 6,600 miles of electric transmission lines; 57,900 miles of electric distribution lines; 14,800 miles of natural gas transmission, gathering, and storage pipelines; and 51,800 miles of gas distribution pipelines. It served approximately 6 million utility and retail energy customers; and operated underground natural gas storage systems with approximately 1 trillion cubic feet of storage capacity. In addition, Dominion Energy, Inc. sells electricity at wholesale prices to rural electric cooperatives, municipalities, and into wholesale electricity markets. The company was formerly known as Dominion Resources, Inc. and changed its name to Dominion Energy, Inc. in May 2017. Dominion Energy, Inc. was founded in 1909 and is headquartered in Richmond, Virginia.




D is a Dividend Contenders with a 15 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 19.3, 11.6, 9.6 and 8.6. (DividendChampions.xls) Dominion Energy, Inc. now pays dividends of $ 0.835 per share normally in March, June, September and December.


Details of my purchase:




Some ratings for D:

    Yahoo:  Mean Recommendation 2.6, 1y Target Est $ 75.57
    Reuters: Mean Rating 2.59
    Morningstar:  (****) 


At today's exchange rate, that purchase 20 shares of D will increase € 40.40 ($ 49.77) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 12,420.00. With purchase price $ 65.97 plus commission ($ 3.50) my starting yield on cost is 5.05%. After this acquisition, D's weight of my portfolio is about 0.27% and its share of future annual dividend income is approximately 0.32%. My purpose is to add more D to my portfolio if the price remains at these levels.
 

Click here to see my portfolio.

Full Disclosure: Long D 

Thanks for stopping by!


3 comments:

  1. DH, I think D has one of the better combinations of current yield and dividend growth in the market right now. May have some short term headwinds due to interest rate, but long-term looks good. I have added to my position a couple times this year. Tom

    ReplyDelete
  2. Like the D pick up. My recent buys have been in the ute space with D and SO. PPL is another that looks interesting. D has been with me a long time and I have no plans to sell.

    ReplyDelete
  3. Hawk -

    Jealous of the price point you got, congrats!!

    -Lanny

    ReplyDelete

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