[Generated Title]: Dominion's Dividend: A Fool's Errand?
So, Dominion Energy's gonna pay out another dividend, huh? $0.6675 a share. Sounds nice and cozy, right? Like a warm blanket on a cold winter's night. Except that blanket's probably made of asbestos and the "warmth" is just you slowly dying.
The House of Cards
Let's be real, folks. A 4.5% yield? In this economy? Smells like desperation. The article itself admits they're "paying out a fairly large proportion of earnings." Translation: they're raiding the piggy bank to keep investors happy. How long can that last?
And get this: "it wasn't generating positive free cash flows either." Oh, that's just great. So they're borrowing money to pay us dividends? Sounds like a Ponzi scheme with extra steps.
They say EPS is gonna grow by 31.2% next year. Right. And I'm gonna win the lottery. Forecasts are like weather reports – vaguely accurate guesses at best. Show me the money, Dominion. Show me the actual money, not some pie-in-the-sky projection.
A History of Broken Promises
Oh, and the dividend history? "Marked by instability, with at least one cut in the last 10 years." One cut? Give me a break. That's like saying a serial killer has "a slight anger management problem."
From $2.40 to $2.67 since 2015... that ain't growth, that's treading water. At best. More like slowly sinking in quicksand.
Speaking of sinking...remember that Charybdis fiasco? The wind turbine installation vessel that was supposed to be their "strategic advantage?" The one that's now delayed and costing them a fortune? Yeah, that one. More information on the delays can be found in Dominion Energy Confirms Commissioning Delays on WTIV Charybdis.
"I am extremely disappointed that Charybdis has again not met expectations… we failed to deliver regarding Charybdis,” says CEO Robert Blue.
You think?
$715 million for a boat that can't even float straight. Sounds about right for corporate America. They keep saying it'll all be fixed soon... but you know how it goes. Delays, delays, and more delays. And who pays for it? We do, offcourse.
The Bottom Line (and It's Not Pretty)
The article pats them on the back for growing EPS at 12% per annum. Okay, fine. But with that payout ratio so high, where's the room to grow the dividend? It's like trying to inflate a balloon that already about to burst.
And the article’s own conclusion? "The Dividend Could Prove To Be Unreliable." Well, duh.
They’re partnering with the Piedmont Agency on Aging to "help local senior citizens access essential assistance information." Aww, how sweet. Maybe instead of photo ops, they could focus on, ya know, actually providing reliable energy and not screwing over their customers. You can read more about this partnership in Dominion Energy and Piedmont Agency on Aging Share Resources, Assistance for Local Seniors.
Maybe I'm being too harsh. Maybe Dominion will turn it around. Maybe pigs will fly. But let's be real, folks. This whole thing stinks.
So, What's the Real Story?
It's a shell game, plain and simple. They're shuffling money around to keep the stock price up and the executives happy, while the rest of us get stuck holding the bag when the whole thing implodes. I wouldn't touch this stock with a ten-foot pole.
