I am shifting our portfolio assets into sectors that will thrive against a backdrop of slowing GDP growth; I’m not talking recession, just slower growth that will likely start to show up in the second half of 2019, cautions Bryan Perry, editor of Cash Machine.

Dominion Energy (D) is a mid-Atlantic power producer serving Virginia and North Carolina and new entrant in the export of LNG. The company is just completing the acquisition of SCANA Corp., a big power producer in Carolinas. When consummated, this deal will have the company delivering energy to roughly 6.5 million regulated customer accounts.  

In the third quarter, Dominion reported earnings of $1.15 per share, beating estimates of $1.11, coupled with higher guidance for the fourth quarter. Revenue of $3.45 billion was up 8.5% year over year, which is very impressive for an electric utility.

Both Virginia and North Carolina are enjoying a steady migration of new residents and businesses, implying solid future demand for power that will keep the top and bottom lines humming.

Earlier this year in March, the Dominion shipped out its first LNG cargo from its $4 billion Cove Point export terminal in Maryland.

This becomes the U.S.’s second LNG export facility following Cheniere Energy’s startup at Sabine Pass in Louisiana two years ago. Cove Point started construction back in 2014 and liquification started in January 2018.

It’s first shipment delivered LNG to the Dragan LNG terminal in the UK. As of its opening, Cove Point has long-term contracts with Gail India and a joint venture involving Japan’s Sumitomo and Tokyo Gas.

Dominion is trading well off its 52-week high of $85.30, which I believe it will revisit over the next year if not sooner. The company has an excellent history of raising dividends with the current annual payout set at $3.34 per share that translates to a current yield of 4.42%. Let’s power up our Safe Haven Portfolio with Dominion Energy.

Subscribe to Bryan Perry's Cash Machine here…