Duke Energy stock
The second-largest utility by market capitalization, Duke Energy (DUK) is currently trading near its five-year high at ~$88.00. So far this year, Duke Energy stock has rallied more than 13%, largely tracking the broader utilities.
Many of the leading utility stocks from the S&P 500 Utilities Index (XLU) are currently trading at or near their 52-week highs. The recent rally has pushed their valuations beyond their respective historical highs, which ultimately raises the possibility of a notable correction going forward.
In this series, we will see how Duke Energy is placed in terms of earnings relative to its peers, how its stock is valued currently, and how it could look going forward. We will also discuss its dividend profile and how it is positioned for the future.
Interesting facts about Duke
Duke Energy is the largest rate-regulated utility in the country with stable and diversified operations. It has a generating capacity of 49.3 GW (gigawatts), the highest in the country. It serves ~9 million people in the Carolinas, Ohio, Kentucky, and Florida.
Duke Energy acquired Piedmont Natural Gas last year, which is expected to accelerate the utility’s gas operations substantially. It has been paying dividends for the last 91 consecutive years and has raised its per-share dividend in the last 13 consecutive years.
There are a number of utility stocks in SPX Utilities that have handsome dividend profiles and offer stability to investors. However, Duke Energy’s almost entirely regulated operations facilitate relatively higher earnings stability, which enables stable dividends and steady stock price movements.