5 Best Electric Utility Stocks To Buy Now

3. Dominion Energy, Inc. (NYSE:D)

Number of Hedge Fund Holders: 41

Dominion Energy, Inc. (NYSE:D) is an American energy company that produces and distributes energy. It has four operating segments – Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina, and Contracted Assets. Dominion Energy Virginia generates, transmits, and distributes electricity to about 2.7 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina. It is one of the best electric utility stocks to invest in. Dominion Energy, Inc. (NYSE:D)’s board of directors approved a 2023 dividend rate of $2.67, subject to quarterly determination and declaration by the board.

On March 7, UBS reiterated a Neutral rating on Dominion Energy, Inc. (NYSE:D) and trimmed its price target on the shares to $57 from $60. The Virginia legislature passed a comprehensive utility reform bill last month, and the analyst believes the parameters are now set for the next phase of Dominion Energy, Inc. (NYSE:D)’s business review. While the firm thinks a blueprint is in place to address long-standing issues for the stock, it anticipates that execution risk will lead the stock to trade at a double-digit discount on its estimates.

According to Insider Monkey’s fourth quarter database, 41 hedge funds were long Dominion Energy, Inc. (NYSE:D), compared to 29 funds in the prior quarter. Steve Cohen’s Point72 Asset Management is the largest stakeholder of the company, with 3.80 million shares worth $233.5 million. 

Diamond Hill Large Cap Strategy made the following comment about Dominion Energy, Inc. (NYSE:D) in its Q4 2022 investor letter:

“Other bottom contributors included media and technology giant Alphabet, apparel and footwear company V.F. Corporation and utility operator Dominion Energy, Inc. (NYSE:D). Dominion Energy’s stock price weakness was due in part to regulatory concerns surrounding its triennial rate review process and its offshore wind program. Additionally, management highlighted cost pressures, which could hamper growth rates. We believe these headwinds are short-term in nature and continue to hold our position.”