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Dominion Energy is set to pay out a $0.6675 dividend on December 20, 2025, translating to a 4.5% yield. On the surface, that looks like a standard income play in a traditionally stable sector. But digging into the details, particularly around the Coastal Virginia Offshore Wind project (CVOW) and the vessel Charybdis, suggests some turbulence ahead.
The Charybdis Conundrum
CEO Robert Blue's expressed disappointment that the Charybdis "again has not met expectations" is putting it mildly. The delays with the wind turbine installation vessel (WTIV) are more than just a minor setback; they're a significant drag on the project's timeline and, potentially, Dominion's financial projections. The inspection revealed about 200 items needing attention, primarily focused on the electrical system and documentation. As of late October, only 120 of those items were resolved. That leaves a substantial number outstanding, and the clock is ticking. Dominion Energy Confirms Commissioning Delays on WTIV Charybdis - The Maritime Executive
The fact that these issues surfaced after sea trials and sign-offs raises serious questions. What kind of due diligence was performed prior to the vessel’s arrival in Portsmouth? Were these problems foreseeable, and if so, why weren't they addressed earlier? Dominion sunk $715 million into Charybdis. You'd think they would have made sure that the vessel was ready to do its job.
Dominion's decision to build Charybdis was framed as a strategic advantage, a way to control the project's destiny and avoid reliance on foreign vessels. Now, that "advantage" looks more like a costly gamble. It's like building your own car to drive to work, only to discover the engine needs a complete overhaul after you've already started your commute.
Winds of Change or Headwinds of Debt?
Despite the Charybdis challenges, Dominion is forging ahead. 100% of the monopiles are installed, and 63 transition pieces are in place (with all 176 fabricated). The second substation jacket is installed, and the third is slated for the first quarter of 2026. First power is still anticipated in late Q1 2026, with full project completion by the end of 2026, though that timeline is now looking increasingly optimistic. The delays have eaten into the contingency schedule, potentially pushing the final turbine installations into early 2027.
Dominion has already poured $8.2 billion into the CVOW project through September 2025, with another $1.5 billion projected. That's a massive capital commitment, and any further delays or cost overruns will undoubtedly put pressure on the company's financials. I've looked at hundreds of these filings, and the scale of investment here is noteworthy.
The dividend, while currently yielding a respectable 4.5%, isn't necessarily a slam dunk. Dominion's dividend history shows some instability, with at least one cut in the last decade. (That's not exactly reassuring for income-focused investors.) Since 2015, the annual dividend has grown from $2.40 to $2.67, an annual growth rate of about 1.1%—hardly a high-growth story. While EPS has been rising at 12% per annum over the last five years, the company's debt load and capital expenditure requirements for CVOW could limit future dividend increases. Are they betting too much on this wind farm?
A Calculated Risk or a Roll of the Dice?
Dominion's dividend looks like a house of cards built on the unsteady foundation of the Charybdis. While the offshore wind project holds long-term promise, the short-term risks are substantial. Investors should proceed with caution and demand greater transparency about the true state of the Charybdis and its potential impact on Dominion's future earnings.
