The utility sector has been lagging the overall market lately. One of the reasons might be the assumption that the recently passed tax reform will not help the utility sector as much as they would the other sectors.
While that might or might not be true, some of the utilities have given up some gains and as a result are off their recent lofty highs.
I took advantage of this weakness and opened a small position in Dominion Energy Inc (D) at $83.00 a share. The current dividend payout is $0.77 cent a quarter or $3.08 a year per share, giving me a starting yield on cost of about 3.71%.
It gets better though, just recently they established a 2018 dividend of $3.34/share. Since my first dividend will start with the new increased dividend rate, the yield on cost automatically goes up to 4.02%. Not too shabby.
Now, the stock price has since gone down some. I expect/hope for it to go down a bit more and intend to add more in the upper 70's if it gets there.
What do you think of this buy ? Are you looking at any utilities or any other stocks that present value right now?