How Investors Are Reacting To Dominion Energy (D) Teaming With Amazon On Small Modular Reactors

• Dominion Energy has continued expanding its low-carbon generation mix to support a long-term carbon neutrality goal, while signing a recent Memorandum of Understanding with Amazon to explore Small Modular Reactor nuclear development in Virginia amid rising power demand from data centers and other large customers.
• This combination of cleaner generation ambitions and collaboration with a major technology player highlights how Dominion is positioning its grid for data-intensive growth and future nuclear innovation.
• Next, we’ll examine how Dominion’s exploration of Small Modular Reactor technology with Amazon could influence its existing investment narrative.

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Dominion Energy Investment Narrative Recap

To be a shareholder in Dominion Energy, you need to believe in regulated utility growth tied to rising power demand and large-scale grid and generation investment. The Amazon Small Modular Reactor MOU reinforces the long-term data center demand story but does not materially change the near term focus on executing Coastal Virginia Offshore Wind and managing capital needs as interest costs and regulatory outcomes remain key swing factors.

Among recent developments, Dominion’s affirmation of a US$0.6675 quarterly dividend throughout 2025 stands out alongside the Amazon MOU. For many investors, the appeal of potential rate base growth from renewables and nuclear innovation is balanced against a dividend that is not fully covered by free cash flow, underscoring how future capex and financing choices could affect income reliability.

Yet behind the clean energy buildout and big tech partnerships, investors should be aware of growing project cost and regulatory recovery risks…

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

Dominion Energy’s narrative projects $17.8 billion revenue and $3.6 billion earnings by 2028. This requires 5.3% yearly revenue growth and about a $1.1 billion earnings increase from $2.5 billion today.

Uncover how Dominion Energy's forecasts yield a $63.93 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$36.73 to US$63.93 per share, underscoring how differently individual investors view Dominion’s prospects. When you set those views against unresolved cost and regulatory risks on major projects like Coastal Virginia Offshore Wind, it becomes clear why exploring several perspectives can sharpen your own expectations for the company’s performance.

Explore 3 other fair value estimates on Dominion Energy - why the stock might be worth 39% less than the current price!

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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