D vs SRE: Dividend Yield, Growth & Safety Comparison
Dominion Energy, Inc (D) and Sempra (SRE) are both in the Utilities sector, making them natural rivals for dividend investors. D offers a significantly higher 4.19% yield compared to SRE's 2.85%, a gap of 1.34%. For dividend growth, SRE leads with a 5-year CAGR of 4.1% versus D's 1.5%. SRE holds the edge in dividend safety with a "Moderate" rating. SRE is a Dividend Contender with 15 years of consecutive increases.
Key Metrics Comparison
| Metric | D | SRE |
|---|
| Dividend Yield | 4.19% | 2.85% |
| Annual Dividend | $2.67 | $2.56 |
| 5-Year CAGR | 1.5% | 4.1% |
| Payout Ratio | 87% | 79% |
| Consecutive Years | 0 | 15 |
| Price | $66.31 | $94.71 |
Yield Comparison
Dominion Energy, Inc (D) currently yields 4.19%, which is attractive for the broader market. That's 1.34% more than Sempra (SRE), which yields 2.85%. In dollar terms, D pays $2.67/share annually versus SRE's $2.56/share.
Dividend Growth
Over the past five years, SRE has grown its dividend at a 4.1% 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%. SRE: Dividend growth has been steady, with a 3-year CAGR of 4.1% and a 5-year CAGR of 4.1% (10-year: 6.1%).
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. SRE's dividend safety is rated "Moderate." The payout ratio of 79% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. SRE's payout ratio of 79% 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 $285/year from SRE — a difference of $134/year. At $100,000, that gap widens to $1340/year.
Verdict
- Best for income: D
- Best for growth: SRE
- Best for safety: SRE
Frequently Asked Questions
Which has a higher dividend yield, D or SRE?
Dominion Energy, Inc (D) has a higher dividend yield of 4.19% compared to Sempra (SRE) at 2.85%.
Is D or SRE a better dividend growth stock?
Sempra has the stronger dividend growth with a 5-year CAGR of 4.1%, compared to Dominion Energy, Inc's 1.5%.
Which is safer for dividend income, D or SRE?
Dominion Energy, Inc's dividend safety is rated "At Risk" while Sempra 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 79% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x.
How much income does $10,000 in D vs SRE generate?
A $10,000 investment in D generates approximately $419/year in dividends, while the same amount in SRE generates about $285/year.
Is D or SRE a Dividend Aristocrat?
Sempra is a Dividend Contender with 15 consecutive years of increases. Dominion Energy, Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, D or SRE?
Sempra has a lower payout ratio of 79% compared to Dominion Energy, Inc's 87%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
D vs SRE: which is better for retirement income?
It depends on your priorities. D for current income, SRE for dividend growth, SRE for safety. Many retirement investors hold both for diversification.
D Dividend Analysis | SRE Dividend Analysis | All Comparisons | Comparison Tool