Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. It operates in three segments: DVP, Dominion Generation, and Dominion Energy. The DVP segment includes regulated electric transmission and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. There are a few reasons why Dominion is set to dominate.
- Dominion Resources, (D) operates in the all important corridor of power, the Washingon DC Virginia suburbs where unemployment and recession are largely absent because of the growth of Government. Besides what better recession resistant business is there than the power company. Don’t pay your bill, well, no problem. They shut you off and you find a way to pay and forego something else.
- Insiders have been gobbling up this stock for some time.
- Dominion has natural gas assets, pipelines, storage and reserves in the all important Marcellus shale region. Natural gas is unnaturally cheap right now and D is getting penalized for this.
- Dominion is planning to retrofit it’s LNG import facility so it can export natural gas. This could be a huge business and the market is giving them little credit for this. Dominion Cove Point received authorization on October 7, 2011, from the Department of Energy to enter into contracts to export liquefied natural gas to countries that have free trade agreements with the United States. (> Get details and updates.)
- Last but not least Dominion sports a healthy dividend, a 4.2% yield when the risk free rate of return is nearly zero.
