Here's Why This High-Yield Dividend Stock's Earnings Will Look Much Better Soon
Dominion Energy (NYSE: D) has a 5.7% dividend yield, well above the market average of around 1.5% and the average utility yield of 3.6%, using Vanguard Utilities ETF as a proxy. But there's a reason for that relatively high yield. Here's what's going on and why generally accepted accounting principles (GAAP) are making things worse right now.
Dominion Energy has been simplifying its business for well over a decade. It started with a move away from oil production. Then, the giant U.S. utility decided it would get out of the midstream sector, selling a material pipeline business to Berkshire Hathaway. That move, which occurred in 2020, was accompanied by a dividend cut, given the scale of the business being sold.
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Source Fool.com
