Dominion Energy's 88% Data Center Demand Spike Could Get the Dividend Growing Again
Dominion Energy (NYSE: D) is one of the largest regulated utilities in the United States. At the moment, it's offering a lofty 4.8% dividend yield at a time when the average utility's yield is just 2.8%. And yet it is still a hard stock to love because the company's performance around dividends has disappointed on occasion.News last month of an 88% spike in demand for energy from data centers could help get this high-yield stock back on its dividend feet. Here's why.Dominion Energy has radically changed its business over the past few decades. Management's long-term goal has been to reduce risk. Early on, that included selling off investments in the oil production space in favor of more reliable cash-generating assets. The list was eventually whittled down to include electric utilities, natural gas utilities, and energy pipelines. But things changed in a big way in 2020.Continue reading
Dominion Energy (NYSE: D) is one of the largest regulated utilities in the United States. At the moment, it's offering a lofty 4.8% dividend yield at a time when the average utility's yield is just 2.8%. And yet it is still a hard stock to love because the company's performance around dividends has disappointed on occasion.
News last month of an 88% spike in demand for energy from data centers could help get this high-yield stock back on its dividend feet. Here's why.
Dominion Energy has radically changed its business over the past few decades. Management's long-term goal has been to reduce risk. Early on, that included selling off investments in the oil production space in favor of more reliable cash-generating assets. The list was eventually whittled down to include electric utilities, natural gas utilities, and energy pipelines. But things changed in a big way in 2020.
