Saturday, March 9, 2013

Why Dominion Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy giant Dominion Resources (NYSE: D  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Dominion and see what CAPS investors are saying about the stock right now.

Dominion facts

Headquarters (Founded)

Richmond, Va. (1909)

Market Cap

$32.5 billion

Industry

Multi-utilities

Trailing-12-Month Revenue

$13.1 billion

Management

Chairman/CEO Thomas Farrell
CFO Mark McGettrick

Return on Equity (Average, Past 3 Years)

14%

Cash/Debt

$248.0 million / $21.7 billion

Dividend Yield

4%

Competitors

American Electric Power (NYSE: AEP  )
Duke Energy (NYSE: DUK  )
Exelon (NYSE: EXC  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 657 members who have rated Dominion believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, TMFmd19, succinctly summed up the Dominion bull case for our community:

When you add it all up, the generation growth, the midstream opportunities and the financial profile it's easy to see that Dominion has a lot to offer income seeking investors. There's also more potential upside in the future from Cove Point and even an eventual sale or MLP IPO of some of its midstream assets, especially in the Utica. That's why I think Dominion just might be the best positioned utility to generate market beating returns over the next few years.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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