Hennessy Equity and Income Fund on Dominion Energy, Inc.
Thesis
The fund initiated Dominion Energy in January 2026. More than 90% of earnings come from regulated electric and gas utilities in Virginia, North Carolina and South Carolina, which the managers view as a source of predictable cash flow and low cyclicality. Asset sales, debt reduction and bringing in a partner on the offshore wind project have improved the balance sheet and financial flexibility. Longer term, rising Virginia power demand from data centers and AI, combined with exclusive service territories, supports growth, steady income and an attractive dividend.
“Over the long term, Dominion should benefit from growing power demand as data centers and AI usage expand in Virginia.”