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Stock Strategist

Dominion Continues Its Wide-Moat Transformation

Growth projects and the Questar acquisition will add to its scale.

Mentioned:

 Dominion Resources(D) wide economic moat is as strong as ever, and the company will soon be the only wide-moat utility we cover, once Fortis completes its acquisition of wide-moat ITC Holdings later this year. Dominion’s wide-moat growth projects--notably the Atlantic Coast Pipeline and Cove Point LNG facility--are on track and on budget. Virginia regulation remains as constructive as ever, with demand growth and investment opportunities topping its peers. We expect wide-moat businesses to generate 50% of Dominion’s operating earnings by 2020 and to continue growing as a share of consolidated earnings well beyond 2020.

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Charles Fishman does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.