Resumed Offshore Wind Build And Dividend Declaration Could Be A Game Changer For Dominion Energy (D)

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What Is Dominion Energy’s Investment Narrative?

To own Dominion Energy today, you really have to believe in the utility’s ability to balance capital intensive growth projects with a steady income profile. The reaffirmed quarterly dividend at US$0.6675 per share underlines management’s commitment to income, even as free cash flow and interest coverage remain pressure points. The court’s decision to let construction resume on Coastal Virginia Offshore Wind is a meaningful short term catalyst because it gets a US$10.7 billion project moving again rather than stuck in limbo, but it also keeps execution, cost overrun and legal risks front and center. With Dominion trading close to consensus fair value and earnings growth expected to be moderate, the big question is whether this mix of regulated stability and large scale renewables justifies the current valuation.

But legal and cost risks around Coastal Virginia Offshore Wind could still surprise investors. Dominion Energy’s share price has been on the slide but might be dropping deeper into value territory. Find out whether it’s a bargain at this price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$36.85 to US$63.44, reflecting very different expectations. Set against the resumed but litigated Coastal Virginia Offshore Wind build, that spread underlines why it helps to weigh multiple views on Dominion’s risk and return trade off.