Dominion Energy Announces $0.6675 Dividend Payment with 4.4% Yield, Projected Earnings Expected to Cover Future Distributions.

Dominion Energy announced a dividend of $0.6675 per share, with a dividend yield of 4.4%. The company's projected earnings growth of 30.7% next year could cover future distributions, but the dividend has been cut at least once in the last 10 years, and the company has only grown its earnings per share at 3.9% over the past five years. The dividend payment may be unsustainable in the long term.

Dominion Energy (NYSE: D) reported robust second-quarter 2025 earnings, with GAAP net income of $760 million, or $0.88 per share, representing a 38% increase from the prior year [1]. Operating earnings, the company’s preferred non-GAAP metric, rose to $0.75 per share, up from $0.65 a year earlier. The Richmond-based utility reaffirmed its full-year 2025 operating earnings guidance of $3.28 to $3.52 per share [1].

Key drivers of the earnings growth include a 9% increase in operating revenue to $3.81 billion, driven by strong performance in Dominion Energy Virginia and South Carolina. The Virginia segment contributed $0.64 per share in operating earnings, boosted by higher rider equity returns and favorable customer usage. South Carolina added $0.13 per share, up from $0.08 last year, driven by base rate case benefits and improved weather-adjusted demand [1].

However, the Contracted Energy segment saw a $0.07 EPS decline year-over-year, primarily due to planned outages at Millstone nuclear units. Corporate and other operations narrowed their loss to $0.07 per share, reflecting lower interest expenses and improved corporate cost control [1].

Dominion's earnings call emphasized stability amid broader market uncertainty and highlighted progress on strategic initiatives, including the Coastal Virginia Offshore Wind (CVOW) project and the retirement of uneconomic generation assets [1].

The company's projected earnings growth of 30.7% next year could cover future distributions, but the dividend has been cut at least once in the last 10 years, and the company has only grown its earnings per share at 3.9% over the past five years. The dividend payment may be unsustainable in the long term [2].

Dominion's long-term operating EPS growth target of 5–7% hinges on its ability to execute on CVOW, scale renewable energy projects, and maintain its dividend-paying prowess. The company's 389th consecutive quarterly dividend—currently at 66.75¢ per share—remains sustainable for now, but a payout ratio of 107.3% against net income suggests reliance on external financing [2].

The key risks ahead include cost overruns at CVOW, interest rate sensitivity, and regulatory uncertainty. Dominion's ability to navigate these challenges will determine its long-term success [2].

For now, Dominion's stock has shown mixed performance following earnings beats, with a 44.44% win rate over three days and just 22.22% over 30 days. Long-term gains require sustained operational execution and favorable macroeconomic conditions [2].

References:
[1] https://oilprice.com/Company-News/Dominion-Energy-Sees-Q2-Profit-Surge.html
[2] https://www.ainvest.com/news/dominion-energy-q2-2025-earnings-sustaining-momentum-transformed-energy-landscape-2508/