D vs ES: Dividend Yield, Growth & Safety Comparison
Dominion Energy, Inc (D) and Eversource Energy (ES) are both in the Utilities sector, making them natural rivals for dividend investors. Both stocks offer similar yields — D at 4.19% and ES at 4.29%. For dividend growth, ES leads with a 5-year CAGR of 5.7% versus D's 1.5%. Both stocks carry a "At Risk" dividend safety rating. ES is a Dividend Aristocrat with 26 years of consecutive increases.
Key Metrics Comparison
| Metric | D | ES |
|---|
| Dividend Yield | 4.19% | 4.29% |
| Annual Dividend | $2.67 | $2.97 |
| 5-Year CAGR | 1.5% | 5.7% |
| Payout Ratio | 87% | 82% |
| Consecutive Years | 0 | 26 |
| Price | $66.31 | $73.58 |
Yield Comparison
Eversource Energy (ES) currently yields 4.29%, which is attractive for the broader market. That's 0.10% more than Dominion Energy, Inc (D), which yields 4.19%. In dollar terms, ES pays $2.97/share annually versus D's $2.67/share.
Dividend Growth
Over the past five years, ES has grown its dividend at a 5.7% CAGR compared to D's 1.5%. D: Dividend growth is slowing — the 3-year CAGR of 0.0% trails the 5-year rate of 1.5% and the 10-year rate of -0.5%. ES: Dividend growth has been steady, with a 3-year CAGR of 5.6% and a 5-year CAGR of 5.7% (10-year: 6.0%).
Dividend Safety
D's dividend safety is rated "At Risk." The payout ratio of 87% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.1x. ES's dividend safety is rated "At Risk." The payout ratio of 82% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. ES's payout ratio of 82% is more conservative than D's 87%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in ES generates approximately $429/year in dividend income, compared to $419/year from D — a difference of $10/year. At $100,000, that gap widens to $100/year.
Verdict
- Best for income: ES
- Best for growth: ES
- Best for safety: ES
Frequently Asked Questions
Which has a higher dividend yield, D or ES?
Eversource Energy (ES) has a higher dividend yield of 4.29% compared to Dominion Energy, Inc (D) at 4.19%.
Is D or ES a better dividend growth stock?
Eversource Energy has the stronger dividend growth with a 5-year CAGR of 5.7%, compared to Dominion Energy, Inc's 1.5%.
Which is safer for dividend income, D or ES?
Dominion Energy, Inc's dividend safety is rated "At Risk" while Eversource Energy is rated "At Risk." The payout ratio of 87% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.1x. The payout ratio of 82% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
How much income does $10,000 in D vs ES generate?
A $10,000 investment in D generates approximately $419/year in dividends, while the same amount in ES generates about $429/year.
Is D or ES a Dividend Aristocrat?
Eversource Energy is a Dividend Aristocrat with 26 consecutive years of increases. Dominion Energy, Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, D or ES?
Eversource Energy has a lower payout ratio of 82% compared to Dominion Energy, Inc's 87%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
D vs ES: which is better for retirement income?
It depends on your priorities. ES for current income, ES for dividend growth, ES for safety. Many retirement investors hold both for diversification.
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