Energy firm Dominion Resources (D) is involved in everything from power generation (it owns 27 gigawatts of generation capacity), gas transportation and storage (through 11,000 miles of pipeline and 950 billion cubic feet of storage capacity), and power transmission (with another 6,300 miles of power lines in its portfolio). The firm is also the local power or gas utility for 5.8 million regulated and unregulated customers in 17 states.
The fact that Dominion has a hand in a disparate group of energy commodities in its business is a good thing for investors -- it means that operations aren't overly impacted by unfavorable market prices in electricity, or in natural gas. Better still, because Dominion's business is integrated (from generation or gathering to distribution) in many of the areas that it operates in, the firm is able to mitigate the impact of market prices.Typically, utilities and dividends go hand in hand. While Dominion's hefty non-regulated exposure makes it a less conventional income option, the firm still generates enough free cash to easily support a nearly 4% yield right now, and bigger payouts going forward. Expect a boost to the firm's 52.75-cent quarterly cash payout in the next quarter.
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