Shares of Dominion and other utilities have been dragged down with the broader market over the past month, a surprise to many since utility stocks are normally seen as safe havens during a downturn. In fact, Dominion's dividend yield spiked to 6.3% on Monday (its highest level in over a decade) and now sits at 5.6%, causing some investors to wonder whether such a high yield might indicate trouble for Dominion's dividend. As a public utility, Dominion enjoys much greater assurance of profit than most companies. Approximately 70% of the firm's earnings are generated by state-regulated utility operations, with another 25% from gas transmission and storage services backed by long-term contracts and regulated tariff rates.

Chevron (CVX) this morning announced a series of actions to preserve capital in response to the unprecedented decline in oil prices. As part of the plan, management pledged to protect the dividend: “Chevron’s financial priorities remain unchanged. Our focus is on protecting the dividend, prioritizing capital that drives long-term value, and supporting the balance sheet.” – Chevron CFO Pierre Breber As we discussed earlier this month, Chevron has a very strong balance sheet and is one of the very few companies in the energy sector to earn a Safe Dividend Safety Score.

CBS and Viacom completed their merger in December 2019 to form ViacomCBS (VIAC). The global media and entertainment company creates content and owns a variety of cable and broadcasting networks. Source: ViacomCBS Investor Presentation The coronavirus outbreak has created several headaches for ViacomCBS which seem likely to slow the company's progress in reaching its deleveraging target. As a result, we are downgrading ViacomCBS's Dividend Safety Score to Borderline Safe. A sharp slump in advertising represents the first issue facing the company. Advertising accounts for about 40% of ViacomCBS's revenue.

Paychex (PAYX) provides payroll and human resource services to small- and mid-sized businesses across a wide range of industries. The firm's operations historically generated predictable free cash flow and high margins. Even during the 2007-09 financial crisis, Paychex's payroll services segment only experienced 2-3% annual revenue declines, and its human resources division grew each year. Each year free cash flow continued covering Paychex's dividend, which management has paid without interruption for more than two decades. Paychex's businesses are driven by its number of clients and how many people its clients employ. These factors determine how many paychecks get sent out, as well as the level of HR benefits and services that can be provided.