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The newspaper were I live announced today that Dominion is selling off two of its divisions to raise cash. The two divisions are Dominion People's which serves Pittsburgh and southwest PA and Dominion Hope which serves West Virginia. Cash amount is about $950Mil and the buyer is an Australian investment company.

The article further states that these divisions have been on the block since 2006. Anyone here remember what the rationale for divesting these two units might have been? and what the expected cash intake was? Also, what is the money being raised for?
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Wow. Activity on the D board. I have no clue what the answer to your question is, but glad to see a post here.
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I just happened to read the S&P Analyst's Report on D.

They say that the proceeds from the sale of the PA and WVA utilities will used to "reduce debt". S&P rates D a "STRONG BUY" and they expect a substantial increase in the dividend in 2010.

I'm considering adding some shares of D to my portfolio. I'm no expert on utilities, but the S&P report is very favorable. The consensus of other analysts is in the "hold" range.

I'm looking for a very conservative investment in this case. With a
beta of 0.5, D should move slowly compared to the S&P 500. And with a current dividend of 5.37%, investors get a much better yield than that of money market funds (currently ~ 0.5%)

I'd appreciate any feedback.

Jack
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I have been buying D regularly for the past three years. I like the trend in the natural gas business of simply becoming the distributor, rather than taking a stake in the commodity pricing and allowing others to buy and sell the gas to consumers (where allowed.)

I also like the long term population trends - increasing - for the southeast where most of D's holdings are in.

Aside from those two differentiators, I don't really dig too deep to differentiate D from other utilities.

The dividend payout is high in comparison to the industry right now, though. http://www.reuters.com/finance/stocks/ratios?symbol=D.N&...
I would watch that ratio for awhile if you are comparing other utilities.

However, I am happy with my investment so far, especially as I reinvest the dividends.

T. Allan
Home Fool
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