Dominion Energy, Inc. (NYSE:D) has announced that it will pay a dividend of $0.6675 per share on the 20th of March. This means the dividend yield will be fairly typical at 4.9%.
See our latest analysis for Dominion Energy
Dominion Energy’s Payment Could Potentially Have Solid Earnings Coverage
Unless the payments are sustainable, the dividend yield doesn’t mean too much. Based on the last payment, earnings were actually smaller than the dividend, and the company was actually spending more cash than it was making. Paying out such a large dividend compared to earnings while also not generating free cash flows is a major warning sign for the sustainability of the dividend as these levels are certainly a bit high.
The next year is set to see EPS grow by 38.4%. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 72% which brings it into quite a…
