D vs SRE: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
D yields 1.34% more than SRE. In dollar terms, D pays $2.67/share vs SRE's $2.56/share annually.
Dividend Growth
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: 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: 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.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in D vs SRE today?
At $66.31 per share, $10,000 buys about 150.8 shares of Dominion Energy, Inc (D). Each share pays $2.67 per year in dividends, so the position starts out generating roughly $403 per year — about $34 a month.
At $94.71 per share, $10,000 buys about 105.6 shares of Sempra (SRE). Each share pays $2.56 per year in dividends, so the position starts out generating roughly $270 per year — about $22 a month.
D is the larger income stream from day one: $133 per year more on the same $10,000 invested.
What could $10,000 of D or SRE income look like in 10 years?
Dominion Energy, Inc (D) has raised its dividend about 1.5% a year over the past five years. If that pace held, the $419 per year that $10,000 generates today at the current 4.19% yield would reach $484 per year by 2036 — a 4.8% yield on the original cost.
Sempra (SRE) has raised its dividend about 4.1% a year over the past five years. If that pace held, the $285 per year that $10,000 generates today at the current 2.85% yield would reach $424 per year by 2036 — a 4.2% yield on the original cost.
On those trailing rates, D pays more in 2036: $484 versus $424 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would SRE's dividend growth overtake D's higher yield?
Sempra (SRE) yields less today (2.85% vs 4.19%) but has grown its dividend faster — 4.1% vs 1.5% a year over the past five years. If both trends continued, a $10,000 position in SRE would start out-earning the same position in D around 2042 (roughly 16 years from now), paying about $538 per year at the crossover. Before that point, D pays more each year; after it, the gap compounds in SRE's favor.
Can D and SRE afford their dividends?
Dominion Energy, Inc (D) earns $3.06 per share against $2.67 paid out in dividends — 1.1x coverage (a 87% payout ratio).
Sempra (SRE) earns $3.25 per share against $2.56 paid out in dividends — 1.3x coverage (a 79% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, D or SRE?
For income you need right now, Dominion Energy, Inc (D) leads: $100,000 invested today pays about $349 a month at the current 4.19% yield, versus $237 a month from Sempra (SRE) at 2.85%.
With a decade or more before the income is needed, SRE's faster dividend growth (4.1% vs 1.5% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: SRE has raised its dividend 15 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $730/yr in D vs $562/yr in SRE by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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