D vs SO: Dividend Yield, Growth & Safety Comparison
Dominion Energy, Inc (D) and Southern Co (SO) are both in the Utilities sector, making them natural rivals for dividend investors. D edges ahead on yield at 4.19% versus SO's 3.22%. For dividend growth, SO leads with a 5-year CAGR of 2.9% versus D's 1.5%. SO holds the edge in dividend safety with a "Moderate" rating. SO is a Dividend Aristocrat with 25 years of consecutive increases.
Key Metrics Comparison
| Metric | D | SO |
|---|
| Dividend Yield | 4.19% | 3.22% |
| Annual Dividend | $2.67 | $2.92 |
| 5-Year CAGR | 1.5% | 2.9% |
| Payout Ratio | 87% | 73% |
| Consecutive Years | 0 | 25 |
| Price | $66.31 | $94.53 |
Yield Comparison
Dominion Energy, Inc (D) currently yields 4.19%, which is attractive for the broader market. That's 0.97% more than Southern Co (SO), which yields 3.22%. In dollar terms, D pays $2.67/share annually versus SO's $2.92/share.
Dividend Growth
Over the past five years, SO has grown its dividend at a 2.9% 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%. SO: Dividend growth has been steady, with a 3-year CAGR of 2.8% and a 5-year CAGR of 2.9% (10-year: 6.4%).
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. SO's dividend safety is rated "Moderate." The payout ratio of 73% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. SO's payout ratio of 73% is more conservative than D's 87%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in D generates approximately $419/year in dividend income, compared to $322/year from SO — a difference of $97/year. At $100,000, that gap widens to $970/year.
Verdict
- Best for income: D
- Best for growth: SO
- Best for safety: SO
Frequently Asked Questions
Which has a higher dividend yield, D or SO?
Dominion Energy, Inc (D) has a higher dividend yield of 4.19% compared to Southern Co (SO) at 3.22%.
Is D or SO a better dividend growth stock?
Southern Co has the stronger dividend growth with a 5-year CAGR of 2.9%, compared to Dominion Energy, Inc's 1.5%.
Which is safer for dividend income, D or SO?
Dominion Energy, Inc's dividend safety is rated "At Risk" while Southern Co is rated "Moderate." 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 73% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
How much income does $10,000 in D vs SO generate?
A $10,000 investment in D generates approximately $419/year in dividends, while the same amount in SO generates about $322/year.
Is D or SO a Dividend Aristocrat?
Southern Co is a Dividend Aristocrat with 25 consecutive years of increases. Dominion Energy, Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, D or SO?
Southern Co has a lower payout ratio of 73% compared to Dominion Energy, Inc's 87%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
D vs SO: which is better for retirement income?
It depends on your priorities. D for current income, SO for dividend growth, SO for safety. Many retirement investors hold both for diversification.
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