Is Dominion Energy’s (D, $76.73) to lose its tag of ‘dividend growth machine’?
Known for its generous dividend yield, one of the largest utility company in the United States – Dominion Energy, is all set to lose its tag of ‘dividend growth machine’ as the company plans to slow down its dividend growth to ensure it remains a great income stock.
Sitting at the top end of the spectrum in terms of dividend yield compared to its peers, the company has an impeccable record of increasing its dividend annually for 16 consecutive years. Further, dividend growth of the company over the past decade has averaged just under 8% a year, but recently it has again gone back to around 10%.
Amidst such a scenario, the company has been recently seen projecting a massive slowdown in the dividend growth rate and expects the same to hover around 2.5% in 2020, and remain at that level for at least the next few years.
So, why the sudden brake in the dividend growth?
The reason behind such a move is basically the company creating some financial breathing space for itself, as it changes gear in terms of the business model. The company has been recently seen moving its business more and more toward assets with regulated businesses or fee-based structures. Off late, the company has undertaken a number of acquisitions like buying of smaller and financially troubled utility SCANA and acquiring its controlled midstream partnership to further widen its portfolio.
But all these acquisitions, despite a number of asset sales, has resulted in relatively high leverage for the company compared to peers. With a debt to EBITDA of ~6.4 times at the end of the Q1, Dominion easily sits at the top end of the industry.
Owing to the pressure of such high leverage, the company is likely to opt for a dividend cut as it seeks to maintain its investment-grade credit rating and to ensure a steady income flow for its investors.
Momentum Indicator for D turns positive, indicating new upward trend
D saw its Momentum Indicator move above the 0 level on June 12, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 97 similar instances where the indicator turned positive. In of the 97 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for D just turned positive on June 15, 2026. Looking at past instances where D's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where D advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 237 cases where D Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for D moved out of overbought territory on May 22, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where D declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. D’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.125) is normal, around the industry mean (1.899). P/E Ratio (20.071) is within average values for comparable stocks, (19.325). Projected Growth (PEG Ratio) (2.966) is also within normal values, averaging (2.450). Dividend Yield (0.039) settles around the average of (0.035) among similar stocks. P/S Ratio (3.362) is also within normal values, averaging (83.803).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. D’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 45, placing this stock worse than average.
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General Information
a producer of electricity, natural gas and related services
Industry ElectricUtilities
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