Wednesday, April 18, 2018

Recent Buy: Dominion Energy (D)

The second purchase I made this month came right after the first. The market has been volatile, but the most important thing is getting money into the market as often and as fast as you can. There is no point waiting days or even months to try and see if the market will go lower. I try to find stocks that are undervalued or that I think are a good value relative to the market. You can always find value in the market even when it was at all time highs. It may have been harder, but there were still good buys out there. 

On April 6th, I was able to buy 15 shares of Dominion Energy Inc. (D) for $66.90 a share. This adds $50.10 of yearly dividend income to my portfolio! 

Some quick facts about Dominion Energy:
  • EPS of 3.38
  • P/E of 19.45
  • Current yield of 5.08%
  • EPS growth as follows
    • 1 year - -1.9%
    • 3 year - 14.6%
    • 5 year - 6.3%
  • Dividend growth rate as follows
    • 3 year - 8.1%
    • 5 year - 7.5%
    • 10 year - 7.6%
  •  Dividend payout ratio at 89%
The utilities sector has gotten hit hard recently with many names performing very poorly this year. However, all of these companies boast generous dividend yields and will be fine in the long term. I'm actually a customer of dominion energy in northern Virginia. They serve a large number of customers in northern Virginia and will continue to do so going forward. This area is growing rapidly and their business will continue to grow. I don't see any competitors taking over the space anytime soon. 

This was probably my last purchase until June, but I'll keep you guys posted. 

Let me know what you guys think! What have you guys been purchasing?

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