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4-Star Stocks Poised to Pop: Dominion Resources

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy giant Dominion Resources (NYSE: D  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Dominion's business and see what CAPS investors are saying about the stock right now.

Dominion facts

Headquarters (Founded)

Richmond, Va. (1909)

Market Cap

$28.5 billion

Industry

Electric utilities

Trailing-12-Month Revenue

$15.09 billion

Management

Chairman/CEO Thomas Farrell
CFO Mark McGettrick

Return on Equity (Average, Past 3 Years)

17.7%

Cash/Debt

$120 million / $19.4 billion

Dividend Yield

3.9%

Competitors

American Electric Power (NYSE: AEP  )
Duke Energy (NYSE: DUK  )
Exelon (NYSE: EXC  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 623 members who have rated Dominion believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Chemdawg, who is ranked in the top 5% of our community, and LegendPhoenix.

Less than two months ago, Chemdawg tapped Dominion as a stable income opportunity:

[I]n an inconsistent world, this is a pretty safe place to be. [S]olid, increasing dividend, well funded and loads of free cash flow. [A] basic necessity with almost no price elasticity. ... [G]et in before the panic drives the yields down.

Over the past three years, in fact, Dominion has grown its dividend at a solid rate of 7.3% annually. That's faster than that of rivals like Duke (3.7%) and Exelon (3.8%), much less AEP's average dividend decline of 9%.

CAPS member LegendPhoenix elaborates on the Dominion bull case:

I tried to consider which stocks would have relatively low volatility during this tumultuous economic climate. My goal was to find a company that provides a service or product that people really need or, better yet, has their customers committed into paying a monthly bill and they do so happily. Preferably, this company provides good reliable service, pays a handsome dividend and has a positive, long-term economic outlook.

This Richmond, Virginia-based company has been in the electric business for over 100 years. They currently serve more than 5 million retail energy customers and they have rewarded their investors with 334 consecutive dividend payments. The current majority of their electric production comes from coal and nuclear, but they have begun construction on a natural gas processing plant in West Virginia and they continue to grow their renewable energy sources from wind, hydro and biomass.

What do you think about Dominion, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Dominion? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Dominion and Exelon, as well as creating a covered strangle position in Exelon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Brian Pacampara
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Related Tickers

11/21/2014 4:03 PM
D $73.25 Up +0.58 +0.80%
Dominion Resources CAPS Rating: ***
AEP $57.42 Up +0.19 +0.33%
American Electric… CAPS Rating: ****
DUK $79.77 Down -0.40 -0.50%
Duke Energy Corp CAPS Rating: ****
EXC $36.25 Up +0.31 +0.86%
Exelon CAPS Rating: ****

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