Analyzing Duke Energy from a Dividend Investor’s Perspective
Duke Energy (DUK) is currently trading at a dividend yield of 4.1%, much higher than the industry average of 3.5%.
The consensus Wall Street analyst price target for Duke Energy (DUK) is $80.89.
Among US utility giants, Duke Energy (DUK) stock appears to be trading at a fair valuation compared to peers.
On March 24, 2017, Duke stock was trading 4% above its 50-day and 200-day moving averages.
The consensus Wall Street analyst price target for Southern Company (SO) is $50.71.
Currently, Southern Company’s RSI (relative strength index) stands at 53.
Southern Company (SO) stock appears to be trading at a premium compared to peers.
Southern Company has underperformed peers by a fair margin so far this year.
Analysts’ consensus price target for Duke Energy (DUK) is $80.89. Its current market price is $82.99. It implies a fall of nearly 2.5% over the next year.
With investors worried about President Trump’s ability to push proposed reforms, broader markets might become volatile in the near future.
Exelon (EXC) has a price target of $38.75, as compared to its current market price of $35.96, which implies an estimated upside of ~8% over the next year.
Although Exelon (EXC) has consistently paid dividends for the past several years, its dividend yield has declined significantly over the past five years.
Utilities are trading at a valuation ratio just above 10x, which means that Exelon seems to be attractively placed next to peers and its historical average.
Exelon (EXC) stock currently looks stable, trading on par with its 50-day MA (moving average) and 4% above its 200-day MA.
Right now, Exelon (EXC), the largest hybrid utility in the US, seems to be relatively better placed among peers.
Duke Energy (DUK) seems to have a marginal edge over Southern Company (SO) due to its relatively stable earnings growth prospects.
In 2016, Southern Company (SO) and Duke Energy (DUK) gave away 86% and 91%, respectively, of their profits as dividends.
In 2016, Duke Energy (DUK) paid dividends of $3.36 per share, while Southern Company (SO) paid dividends of $2.22 per share.
Utility giants SO and DUK have healthy dividend profiles and premium yields. But to know which one is superior, we have to compare dividend profiles.
According to Wall Street analysts, Dynegy’s (DYN) price target for the next year is $11.93. It implies an estimated rise of nearly 71.0% in one year.