Reasons to Give Dominion Energy a Spot in Your Portfolio Right Now

Dominion Energy, Inc. D focuses on strategic long-term investment and infrastructure expansion, which will strengthen its electric and natural gas systems and improve service reliability. The company is strategically adding renewable assets to its generation portfolio to achieve carbon neutrality by 2050. Given its strong growth and better future expansion plan, Dominion Energy makes for a solid investment option in the Zacks Utility-Electric Power industry.Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.D’s Growth Outlook & Surprise HistoryThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.30% to $3.40 in the past 60 days.The Zacks Consensus Estimate for 2025 revenues is pegged at $15.56 billion, which indicates growth of 7.62% from the 2024 reported figure.D’s long-term (three to five years) earnings growth rate is 10.26%.D’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 12.72%.Dominion Energy’s Capital Return ProgramDominion Energy has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 66.75 cents per share, resulting in an annualized dividend of $2.67. D’s current dividend yield is 4.34%, better than the Zacks S&P 500 composite's average of 1.11%.Dominion Energy’s Capital Investment and Expansion PlanDominion Energy has a structured and systematic long-term capital expenditure plan to strengthen and expand its infrastructure. Positioning itself for long-term leadership, the company has committed to a nearly $50 billion infrastructure investment plan through 2029, starting with $12.1 billion in 2025.These investments support the company’s long-term objective of expanding battery storage, solar, hydro, and both offshore and onshore wind projects by 2036, and increasing renewable energy capacity by more than 15% per year, on average, over the next 15 years.D’s Return on EquityReturn on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, D’s ROE is 9.60%, higher than the sector average of 9.38%.D’s Solvency RatioDominion Energy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.6. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.D’s Share Price PerformanceOver the past six months, D’s shares have risen 9.2%, but lagged behind the industry’s growth of 11.9%. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Entergy Corporation ETR, Edison International EIX and CenterPoint Energy, Inc. CNP, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ETR’s long-term earnings growth rate is 10.21%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.90, which suggests year-over-year growth of 6.85%. EIX’s long-term earnings growth rate is 10.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.10, which suggests year-over-year growth of 23.73%. CNP’s long-term earnings growth rate is 8.86%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.77, which suggests year-over-year growth of 9.26%. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Entergy Corporation (ETR): Free Stock Analysis Report Edison International (EIX): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks