Dominion (NYSE:D) is an American Utility company located in Virginia, investors are attracted to the stock for its 4.20% yield. D trades at 13.57x 2011 earnings. Even though D has held up well downturns, yet also performed nicely in bull environments. I would urge D holders to consider reallocating capital overseas into an alternative. CPFL Energia (NYSE:CPL) a Brazilian Utility seems much more attractively priced. CPL has a dividend yield 220 basis points higher at 6.40% and also has much better capital appreciation potential. This is because unlike in the U.S. where electricity demand is relatively stagnant, in Brazil with around 7% GDP growth for 2010 electricity demand is increasing. So CPL has better potential capital appreciation, 220 basis point better yield, and is 8% cheaper with 12.45x 2011 earnings.
Disclosure: Long CPL