How Dominion Energy's (D) Accelerated Equity Raising May Shape Its Long-Term Growth Ambitions

• Earlier this month, Dominion Energy closed a US$328.72 million shelf registration and filed a new US$738.96 million shelf registration, both involving the offer of common stock through its Dividend Reinvestment Plan.
• This activity highlights Dominion's ongoing need for capital to support investments in its regulated business and large-scale infrastructure projects.
• We'll look at how Dominion's accelerated capital raising plans through its Dividend Reinvestment Plan could influence the company's future growth outlook.

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Dominion Energy Investment Narrative Recap

To own a piece of Dominion Energy, investors need confidence in the company’s ability to execute large-scale regulated infrastructure projects while managing capital needs, regulatory scrutiny, and a substantial dividend. Dominion's recent capital raisings via its Dividend Reinvestment Plan do not, on their own, change the near-term catalyst of robust demand growth in its service regions, nor do they diminish the ongoing risk around escalating costs and regulatory approvals for major infrastructure investments.

Arguably the most relevant recent announcement is Dominion’s Q3 results, which showed increased power demand and higher earnings across its core business. This operational momentum is directly linked to the company’s ability to fund, complete, and earn regulated returns on its major capital projects, even as it raises fresh equity to support them.

Yet, in contrast to rising revenue, the scale and frequency of new equity issuances raise questions about the future sustainability of Dominion’s...

Read the full narrative on Dominion Energy (it's free!)

Dominion Energy's outlook anticipates $17.8 billion in revenue and $3.6 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 5.3% and an earnings increase of $1.1 billion from the current $2.5 billion.

Uncover how Dominion Energy's forecasts yield a $64.13 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range from US$36.73 to US$64.13. While opinions differ widely, ongoing cost and regulatory risks for Dominion’s largest projects could weigh on returns, so compare the details and decide where you stand.

Explore 3 other fair value estimates on Dominion Energy - why the stock might be worth as much as $64.13!

Build Your Own Dominion Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Dominion Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Dominion Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dominion Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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