This week Dominion Energy announced a 10% dividend increase. Dominion is increasing their quarterly dividend from $0,835 to $0,9175.
I own 30 shares of Dominion Energy. As a result of the dividend increase my yearly estimated dividend income will increase with $9,90.
Due to the dividend increase my yield on cost based on the new dividend is 5,63%
This week I bought 30 shares Dominion Energy at a price of $65,19 per share. Dominion Energy is currently paying $3,34 in dividends per year. The yield on cost of the Dominion Energy purchase is currently 5,1%.
My yearly estimated dividend income will increase with $100,2 or €83,50 against the current USD/EUR exchange rate.
Dominion Energy is currently 23% below the 52 weeks high reached in December 2017. The share price of Dominion Energy did start to go down since an all stock merger with Scana Energy was announced. Scana shareholders will receive 0.6690 shares of Dominion Energy common stock for each Scana share.
Scana is in financial problems due to a failed project regarding the development of a nuclear power station. Dominion Energy share price is probably under pressure due to investors expecting a high risk on claims for Scana, but it seems that Dominion Energy has itself shielded against liabilities regarding this project due to setting as requirement for the merger that the transaction is contingent upon South Carolina approval of proposed nuclear solution
I considered buying Scana shares to take advantage of the discount compared the merger offer, but at the moment I consider this not in line with my risk profile, because if the merger fails it brings a high risk of banktruptcy for Scana.