Is Dominion Energy a Good Investment?

PHOTO CREDIT: Dominion Energy

OVERVIEW

Dominion Energy is a company based in the United States. The company operates public utilities (natural gas and electricity) in Virginia, North Carolina, South Carolina, and many other states in the US. The company operates thousands of lines to distribute natural gas and electricity to its customers. The company was founded in 1983.

Why You Should?

  1. Dominion Energy is a great reopening play in an investor’s portfolio. The company has been negatively impacted because of the pandemic as restaurants and other large venues close and stop using electricity and natural gas. Once the pandemic is over and these places start using the company’s products, this will benefit the company and its investors.

Why You Should Not?

  1. The COVID-19 pandemic has hurt some of the company’s results. As restaurants and much of the commercial/enterprise economy shut down due to the pandemic, Dominion saw a decrease in volumes going to these places. This has hurt the company and its investors. However, these impacts will only last in the short to mid-term.

MY OPINION

I think that Dominion Energy is a decent long-term investment due to its position as a good reopening play, its clean energy initiatives, its large base of customers, and a safe investment option. However, tough competition and impacts from the COVID-19 pandemic might hurt the company and its investors in the future.