DUK, SO, and NEE: Inside the Top Utilities’ Payout Ratios



Duke Energy’s dividend statistics

Duke Energy (DUK), a $57-billion energy giant, has what for many investors is an attractive dividend profile. It has paid increasing dividends for the past ten consecutive years.

DUK stats

Duke paid out more than 91% of its earnings to shareholders in 1Q17 in the form of dividends. This is not unusual for utilities. US utilities (XLU), on average, typically give away around 70% of their earnings as dividends.

Remember, the portion of earnings that a company gives away to its shareholders in the form of dividends is referred to as its payout ratio.

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Duke’s industry peers

By comparison, Southern Company (SO) pays out 86% of its profits as dividends. Renewables giant NextEra Energy (NEE) distributes 55% of its profits to shareholders. NextEra Energy’s payout ratio is on the lower side compared to peers, likely due to its heavy capital spending.

You can compare NextEra Energy’s dividend profile with that of Dominion Resources (D) in Market Realist’s series NextEra Energy and Dominion Resources: Dividend Profiles.

Continue to the next and final part of this series for a summary of Duke’s dividend prospects in 2017.


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