Alright, let's talk about Dominion Energy's dividend. Another freakin' dividend announcement. Yawn.
So, Dominion's gonna shell out $0.6675 on December 20th. Big whoop. They're bragging about a 4.5% yield, which they call "fairly typical." Typical of what? Mediocrity? I mean, give me a break. It's like saying a participation trophy is "fairly typical" for showing up.
But here's the kicker: they're paying out a "fairly large proportion of earnings" and aren't generating positive free cash flow. Hello? Red flag, anyone? It's like running a tab at the bar when you're already broke. How long can that possibly last? This ain't rocket science.
They try to sugarcoat it by saying EPS is gonna grow by 31.2% next year. Okay, if that happens. And if they don't screw it up somehow. And if the economy doesn't tank. Too many ifs, if you ask me. It's like betting on a horse race where the horse has three legs and a cough.
And let's not forget the dividend history. "Marked by instability," they admit. Translation: they've cut it before. Once in the last 10 years, they say casually. As if that's no big deal. Try telling that to someone who's relying on that income to, you know, live.
Since 2015, it's gone from $2.40 to $2.67 annually. A whole 1.1% growth per year. Woo-hoo. That barely covers inflation. It's like getting a raise that doesn't even pay for your morning coffee. What's the point? It is hard to live on a dividend income if the company's earnings are not consistent.
And get this: "Dominion Energy Might Find It Hard To Grow Its Dividend." Might? That's the understatement of the century. It's like saying the Titanic "might" have had a slight navigation problem.
They've been growing EPS at 12% per year, which is decent, I guess. But with that high payout ratio, there's not much room to grow the dividend. They’re already close to the edge. It's like trying to squeeze water from a stone.
"The Dividend Could Prove To Be Unreliable," they warn. You think? It's like buying a used car from a guy with a twitchy eye who tells you, "It could break down at any moment, but hey, it's cheap!"
They try to end on a positive note, saying they "wouldn't rule it out as becoming a good dividend payer in the future." Translation: maybe, someday, if the stars align and pigs fly, this might not be a terrible investment. But don't hold your breath.
And then they have the gall to say, "We don't think Dominion Energy is a great stock to add to your portfolio if income is your focus." No freakin' kidding! It's like recommending a leaky boat to someone who wants to cross the Atlantic.
It's just… frustrating. They expect us to believe this nonsense, and honestly, I'm tired of the corporate doublespeak.
It's a gamble, plain and simple. If you're feeling lucky, go ahead and throw your money at it. But don't come crying to me when the whole thing comes crashing down.
