Is Dominion Energy a Good Investment?

PHOTO CREDIT: Dominion Energy

OVERVIEW

Why You Should?

  1. Dominion has taken many initiatives in the past in order to adopt more clean energy production equipment (like solar panels). This adoption will set up the company for the future of the energy industry. This will also benefit investors in the company in the long-term.
  2. Dominion serves many customers in the United States. The company has over 7 million customers in 16 states. These customers have offered increasing streams of recurring revenue. This has benefited the company in the past as they have reported fairly stable results. This has also benefited investors in the company.
  3. Dominion Energy is an extremely safe and stable investment in an investor’s portfolio. This is because the company offers its customers essential products and services. In this case, it is electricity and natural gas utilities. This has helped the company go through tough economic times as they have reported stable results through these times (unlike other companies). This will benefit the company and its investors in the future.

Why You Should Not?

  1. Dominion faces tough competition from other energy companies. Dominion signs mid to long-term contracts with cities and municipalities. However, these contracts can be awarded to other companies like Duke, Southern, Consolidated Edison, and many others. This has hurt the company in the past and might hurt the company and its investors in the future.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.