Current yield stays the same at 3.6% (rounded). So, I cut too: Dominion, that is, right out of my portfolio. DGI Lesson 12: Run Your Investing Like a Business, Dividend Growth Stock of the Month just a month ago, ← We Just Bought Lockheed Martin (LMT) For Our Income Builder Portfolio, We Just Sold Dominion Energy (D) and Bought Pinnacle West Capital (PNW) and Avista (AVA) →. Find the latest Dividend Yield (TTM) for Dominion Energy Inc (D) Skip to main content.

I took the extra $51 from my dividend kitty. The previous Dominion Energy Inc dividend was 94c and it went ex 2 months ago and it was paid 1 month ago. Pinnacle West is yielding 4.1% right now, and that doesn’t include its 2020 dividend increase, which will be announced later this year. You may also speak to representatives Monday through Friday between 8:00 a.m. and 6:00 p.m., toll free, at (800) 552-4034. Dividend safety improves because Dominion’s dividend, obviously, is no longer safe, while PNW’s dividend has a safety score of 92 out of 100. (See DGI Lesson 3, The Five-Year Rule.). Dominion Energy Inc's dividend growth rate is higher than 87.88% of stocks in its sector (Utilities). But a few days ago, Dominion announced a fundamental strategic change. Never invest in a security or idea featured on Dividends and Income unless you can afford to lose your entire investment. Dominion Energy (NYSE:D) today established a 2018 dividend of $3.34/share of common stock, up from $3.035/share in 2017, or a 10% increase. I thought it would be a long-time holding for decades. But a few days ago, Dominion announced a fundamental strategic change. Dividend Summary. That won’t delay the next reinvestment when the kitty hits $1000 in August. When I analyzed Pinnacle West Capital last month, I realized that I had found a fine utility and immediately considered it to be a live candidate to add to my portfolio. D Dividend Chart.

The proceeds from the sale were $2760. I have owned Dominion Energy (D) in my Dividend Growth Portfolio (DGP) since 2019. Other than accumulating dividends awaiting reinvestment, I don’t hold cash in the DGP. The portfolio’s name, after all, is “Dividend Growth Portfolio.” So I wouldn’t add a stock that I know is going to cut its dividend in a few months. Dominion’s shareholders apparently didn’t like the idea. Dominion Energy, Inc. c/o Broadridge Corporate Issuer Solutions P.O. It is going to sell its gas transmission and storage assets to Berkshire Hathaway (BRK) in a $9.7 billion deal, of which $5.7 billion is assumption of debt. We are not licensed financial advisors, tax professionals, or stock brokers and we do not purport to be. I executed the following transactions within a few minutes of each other on Tuesday, July 7, 2020. This is the 370th consecutive dividend that Dominion Energy or its predecessor company has paid holders of common stock. Income drops by $23 per year, or about half of a percent. The next Dominion Energy Inc dividend is expected to go ex in 1 month and to be paid in 2 months. In an instant, Dominion went from a bellwether dividend growth stock to one that has pre-announced a dividend cut. That’s what I am doing here: Re-allocating capital.

Dominion Energy, Inc. (D) will begin trading ex-dividend on September 03, 2020. 1m. I have owned Dominion Energy (D) in my Dividend Growth Portfolio (DGP) since 2019. Note the impact on the portfolio’s income: On an investing blog that I frequent, someone asked me whether, had I known about Dominion’s sale of assets to Berkshire a week in advance, would I have purchased Dominion? The swap lets me exchange a utility for another utility, so my portfolio’s diversification across industries stays the same. 1y. The following screenshot from E-trade shows the sale of Dominion (bottom) and the purchase of PNW (top). Disclaimer. Out of all stocks in our universe of US-listed dividend-issuing stocks, Dominion Energy Inc bears a discount rate, according to our calculations, lower than 85.29% of them (lower discount rates are generally perceived as positive, and a sign of lower risk). A cash dividend payment of $0.94 per share is scheduled to be paid … There are typically 4 dividends per year (excluding specials). I thought it would be a long-time holding for decades. Undervalued Dividend Growth Stock of the Week: AbbVie (ABBV), Dividend Growth Stock of the Month for November: Lockheed Martin (LMT), Undervalued Dividend Growth Stock of the Week: Walgreens Boots Alliance (WBA), We Just Bought More Shares of BlackRock (BLK) and UnitedHealth Group (UNH), We’re Buying BlackRock (BLK) and UnitedHealth Group (UNH) Today, Undervalued Dividend Growth Stock of the Week: Essex Property Trust (ESS), Privacy Policy It’s always fully invested. As soon as the market opened at 9:30, Dominion’s price swooned by more than 10% by the end of the day. Dominion’s quarterly dividend per share will drop from $0.94 to $0.63. It might, but I’m not sticking around to find out. We use cookies to … Here is the same information after I replaced Dominion with Pinnacle West. If your money is not FDIC insured, it may decline in value. I am moving capital from a stock that I have soured on into a stock that now appears to be a better bet to help me reach the main goal of the portfolio, which is to generate reliable, increasing income through dividends.

Plus, PNW is undervalued, as covered in last month’s article about it. Copyright © 2020 Dividends and Income. At the same time, the company decided to pare down its dividend payout ratio from 80% of earnings to 65%. (See DGI Lesson 12: Run Your Investing Like a Business.) The company's last quarterly dividend was declared May 6, 2020. Dominion’s presentation was Monday morning at 9:00. 1d. I was already considering PNW for my next dividend reinvestment in August, so I simply moved the purchase up. Dividend history includes: Declare date, ex-div, record, pay, frequency, amount. It is going to sell its gas transmission and storage assets to Berkshire Hathaway (BRK) in a $9.7 billion deal, of which $5.7 billion is assumption of debt. And that’s if everything goes according to Dominion’s stepped-up increase plan starting from the new lower dividend level in 2022.

Here, from Simply Safe Dividends’ portfolio function, is a snapshot of the portfolio prior to the transactions: Notice how 3% of my income was designated as “may be unsafe.” That’s because Simply Safe Dividends revised Dominion’s safety score downward as soon as it found out about the surprise asset sale. Terms & Conditions My portfolio rules do not require a sell upon hearing of a dividend cut, but according to people who have done the math, it will take Dominion’s dividend around 13 years to recover. After thinking about it overnight, I decided that I didn’t like it either. I do not often sell out of positions, but when I do, I redeploy the money immediately. Dominion Energy, Inc. (D) Dividend Growth History: By month or year. While that gets Dominion out of pipelines and makes its balance sheet prettier, it significantly changes Dominion’s business model and reduces its earnings. Dominion Energy Inc D Morningstar Rating Rating as of Oct 29, 2020. Thank you for your patience during this time. Prevent your State from claiming Your Stock! Box 1342 Brentwood, NY 11717 . The cost of the purchase was $2811. The portfolio’s diversification stays identical. Data is delayed by 15 minutes. While it took me a day to figure things out, in the end it was a pretty easy decision.
The dividend income stays about the same too. 1w. My answer was “no,” because I require a minimum of five years’ dividend growth just to consider a stock. (As of now, Dominion’s dividend will be frozen at the lower level for 2021.). LEGAL DISCLAIMER: Please consult with a licensed investment professional before investing any of your money. Dividend Yield (TTM) is a widely used stock evaluation measure. The opportunity to do so simply came along a few weeks sooner than I expected. Chart. Cookies Policy I frequently say to invest like you’re the CEO of your own business. At its current payout and former price, Dominion was yielding about 4.5%. Taken together, those decisions will result in a 33% dividend cut in the 4th quarter of this year, marked by the arrow on this slide from Dominion’s presentation about the deal. After the cut in December (making a guess as to its price then), it will be yielding 3.4% or so. Perhaps the most important decisions a business owner makes are about how to allocate capital. All Rights Reserved. An argument can be made that Dominion will emerge as a smaller, stronger, and better-focused company. Happily, I had a ready-made replacement: Pinnacle West Capital (PNW), which was my Dividend Growth Stock of the Month just a month ago. The two companies had kept everything secret.

Dividends are payable on Sept. 20, 2020, to shareholders of record at the close of business Sept. 4, 2020. The sale of assets also represents a fundamental change in the company’s business model. When I report on the portfolio next month, Dominion will be gone, PNW will be aboard, and everything else will look pretty much the same.

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