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Dominion Energy: A Simpler, Cleaner Utility Emerging

Investing.com Logo Investing.com By Gurufocus
Dominion Energy: A Simpler, Cleaner Utility Emerging

Dominion Energy is undergoing a strategic transformation, divesting gas distribution businesses and focusing on Virginia's regulated electric utility operations. The company benefits from substantial data center-driven electricity demand growth and is executing a multi-year offshore wind project. With an 8% projected rate base CAGR through 2029, the company offers a 5% dividend yield and potential 6-8% EPS growth, supported by Virginia's favorable regulatory framework that enables timely cost recovery.

Insights
D   positive

The company is executing a clear strategic transformation with observable fundamentals: divesting non-core assets, reducing leverage, and concentrating on Virginia's regulated electric utility with strong growth catalysts from data center demand. The 8% projected rate base CAGR, 5% dividend yield, and favorable regulatory framework support 6-8% EPS growth potential with reasonable valuation at low-teens P/E multiple.