Duke Energy (DUK) is one of the most popular stocks for institutional investors in the utilities industry. Duke’s strong yields and stable business model have attracted institutional investors.
On June 30, 2014, institutional investors held 57.4% Duke Energy’s common stock. Vanguard Group Inc. holds 5.26% of the equity—the highest among institutions. Some of the top asset management companies in the world—like BlackRock and JPMorgan—have Duke Energy in their portfolio.
Among other utilities, American Electric Power Company (AEP) has an institutional ownership of 70.6%. Southern Company (SO) and Dominion Resources (D) have institutional ownership of 52.4% and 61.8%, respectively. All of these companies are part of the Utilities Select Sector SPDR (XLU).
Other investor options
Apart from equity, Duke Energy offers fixed income investors a series of debt instruments—like bonds and premier notes. Duke introduced the concept of premier notes in the utilities industry. Premier notes are an investment route for investors. Investors can lend money to Duke Energy directly. The money helps the company maintain cash flow and run its day-to-day business. In return, the company offers a floating rate interest on the capital. This is higher than other money market instruments.
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