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Stock Strategist

Dominion Continues Its Wide-Moat Transformation

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


 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.

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