Dominion Energy: A Storm Cloud Over a Solid Foundation? Here’s Why Investors Shouldn’t Panic Yet

Dominion Energy (NYSE:D) investors who jumped in three years ago are nursing a 30% paper loss—a painful pill to swallow in any market. But before you panic-sell your shares, let’s dig into the story behind the numbers. Utilities aren’t supposed to be thrilling, but they’re supposed to be steady. And Dominion’s fundamentals still have me convinced this could be a buying opportunity for those with a long-term lens.

The Numbers That Hurt (But Don’t Tell the Whole Story)

Let’s start with the cold hard data: . While the S&P 500 has surged nearly 50% since early 2020, Dominion’s shares have cratered. What’s behind this divergence?

First, the sector itself has been under pressure. Rising interest rates crush utilities because their slow-growth, dividend-reliant models become less attractive to yield-hungry investors. Add to that Dominion’s own challenges: delays in major projects, regulatory hurdles, and the lingering fallout from its abandoned merger with SCANA in 2019. These factors have kept a lid on growth—and investor optimism.

But here’s where the panic-sellers might be missing the point: utilities are recession hedges. When the economy slows, people still need power. And Dominion’s regulated utility business, which accounts for over 80% of its earnings, is as bulletproof as it gets.

The Dividend: A Lifeline in a Volatile World

Dominion’s dividend yield currently sits at 4.5%——a historically rich payout that’s only grown in the past 10 years. With a payout ratio of just 65%, management isn’t overpromising. This isn’t a dividend on life support; it’s a cash cow fueled by regulated rate hikes and steady demand.

Compare that to the broader market: the S&P 500’s average yield is around 1.5%. For retirees or income seekers, Dominion’s payout is a lifeline—especially in a world where bond yields are still below 4%.

The Renewables Play: A Hedge Against the Future

Dominion isn’t just a relic of the coal-and-wires era. The company has doubled down on renewables, aiming for 8,000 MW of solar and wind capacity by 2025. Its offshore wind projects in Virginia and South Carolina could position it as a leader in the clean energy transition—a theme that’s only gaining momentum.

Critics argue this shift is slow, but that’s the point: regulated utilities move deliberately. The payoff isn’t in Silicon Valley-style moonshots but in steady, government-backed returns. And with federal tax credits and state mandates pushing renewables, Dominion’s investments are as safe as they are strategic.

The Bottom Line: Hold, Don’t Fold

Here’s my call: If you own Dominion, don’t panic. This isn’t a stock to bail on at the first sign of a storm. The 30% loss is a paper hit, but the dividend keeps flowing, and the regulated business model remains a fortress.

For new investors, now could be a chance to dip your toe in. At current prices, Dominion trades at just 13x forward earnings—a discount to its five-year average of 16x. If the Fed pivots on rates or the economy softens, this stock could rebound sharply.

But here’s the catch: utilities aren’t for the faint of heart. They’re boring. They’re slow. And they’ll underperform in red-hot markets. But over the long haul, they’re the unsung heroes of portfolios.

Final Verdict: Dominion Energy is no growth stock, but it’s not a value trap either. For those who can stomach short-term volatility and need income, this is a hold. For the rest? Wait for a pullback or pair it with faster-growing names to balance your portfolio. Utilities may not win you bars at the bar, but they’ll keep you in the game when the market gets ugly.

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Data as of [insert recent date]. Past performance is not indicative of future results. Always do your own research or consult a financial advisor before making investment decisions.