Top Stock to Buy #2 – Dominion Resources (D)
Dominion Resources (D), once known as just an electric power utility, has transformed itself over the last 10 years into one of the largest producers and transporters of energy in the United States, operating one of the largest natural gas storage systems in the country.
Despite missing earnings estimates by a small amount for the last two quarters, the stock was up 20% this year at its May high, due to future earnings potential from its gas-transmission business. And its LNG export plan is forward thinking and could ensure profitability for years to come. The consensus earnings estimate for 2013 is $3.34 and $3.54 for 2014.
Its recently declared dividend is its 342nd consecutive quarterly dividend, and that alone is worth a premium price. The company currently pays an annual dividend of $2.25 for a 3.9% yield.
The stock is trading within a bullish triangle with support at its 50-day moving average at $58 and its major bullish support line and 200-day moving average at $56. Buy D for a combination of increasing dividends and long-term growth.