Many of the Wall Street firms that we cover are still very positive on utilities, and this company is highly rated. Dominion Energy Inc. (NYSE: D) is an American power and energy company that operates through the following four segments:
- The Dominion Energy Virginia segment generates, transmits and distributes regulated electricity to residential, commercial, industrial and governmental customers in Virginia and North Carolina.
- The Gas Distribution segment engages in the regulated natural gas gathering, transportation, distribution and sales activities, as well as distributes nonregulated renewable natural gas. This segment serves residential, commercial and industrial customers.
- The Dominion Energy South Carolina segment generates, transmits and distributes electricity and natural gas to residential, commercial and industrial customers in South Carolina.
- And the Contracted Assets segment is involved in the energy marketing and price risk activities.
As of December 31, 2020, Dominion Energy’s portfolio of assets included approximately 30.2 gigawatts of electric generating capacity; 10,500 miles of electric transmission lines; 85,600 miles of electric distribution lines; and 94,200 miles of gas distribution lines. It serves approximately 7 million customers. The company sells electricity at wholesale prices to rural electric cooperatives and municipalities, as well as into wholesale electricity markets.
Shareholders receive a 3.17% dividend. The BofA target price is $86, and the consensus target is $84.57. Tuesday’s last Dominion Energy stock trade was at $78.63 a share.
Shares of this mega-cap energy leader have been on fire but still have big upside potential. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
The analysts said this about the industry giant after it posted strong earnings for the quarter:
Earnings beat versus our estimate was entirely on chemicals with margins at a 10 year high. Solid quarter with debt down $4 billion quarter-over-quarter, cost initiatives on track and with the announced sale of UK non-core assets. Retain Buy as ExxonMobil has invested through the cycle which positions it to expand its future free cash flow to support dividends and stock buybacks.
The company pays investors a huge 5.52% dividend, which will continue to be defended. BofA Securities has a $90 price target, which is much higher than the $63.28 consensus figure. Exxon Mobil stock last closed trading at $60.59 a share.
While definitely the farthest ideas from the go-go momentum and mega-tech giants, these stocks pay dependable dividends and can soften the blow if we see a big sell-off in the next six months. Remember that sell in May and go away has been around for years, and there’s a reason. While not always correct, it has been many years, and it may indeed be the case this year, with its very frothy market.