Has This High-Yield Utility Become a Dividend Risk?
As a long-term dividend investor, I prefer boring stocks with attractive dividend growth prospects. The last thing I want is excitement. But that's exactly what I just got when Dominion Energy (NYSE: D) announced a "business review" along with its third-quarter 2022 earnings.
Investors didn't appreciate that news or the uncertainty they were left with, and sent shares sharply lower. I completely understand that reaction, but what is the real risk? Let's look closer.
Dominion Energy has changed a great deal over the years. At one point, it was a highly diversified business that even included oil drilling assets. But management set about simplifying things and sold off those assets, while shifting toward regulated utility businesses. It arguably completed this transition in 2020 when it sold most of its midstream division to Berkshire Hathaway.
Source Fool.com
