Dominion Resources, Inc. (D) Earnings Report: Can Natural Gas Boost Your Profits?

Source: e*trade.com

The company has increased its dividend at an average annual rate of 6.7% over the past five years, but its yield is down to 3.9% since the Great Recession.

D Dividend data by YCharts

Foolish bottom line
Dominion’s fourth quarter hit the mark, which is a lot to ask for considering investors’ high hopes for this company’s future. With its stock price up 88% since the lows of 2009, this utility’s subsidiaries are straddling a fine line between value and growth.

For those looking to swallow some risk and bet big on natural gas, Dominion offers (currently) steady income and an alternative from energy pure-plays like Chesapeake Energy Corporation (NYSE:CHK). But natural gas prices, domestic policy, and liquid natural gas export potential will make or break this utility, and no amount of effective management or margin thickening will influence those issues.

The article Dominion Earnings Report: Can Natural Gas Boost Your Profits? originally appeared on Fool.com and is written by Justin Loiseau.

Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Dominion Resources, Exelon, and National Grid plc (NYSE:NGG) (ADR). The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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