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Analyzing Duke Energy’s Dividend Yield

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Dividend profile

Duke Energy (DUK) is one of the top-yielding utilities in the S&P 500 Utilities Index (XLU). Currently, it’s trading at a dividend yield of 4.0% compared to the broader utilities’ average dividend yield of 4.0%. Duke Energy has a solid dividend payment history. It has paid a cash dividend for 91 consecutive years.

Duke Energy’s peer Southern Company (SO) offers a dividend yield of 4.9%, while Dominion Energy (D) offers a yield of 3.8%. The largest utility by market cap, NextEra Energy (NEE) is trading at a dividend yield of 2.6%.

DUK yld

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Dividend growth

In the last five years, Duke Energy has managed to increase its dividend per share by 2.9% compounded annually. In comparison, broader utilities (XLU) (IDU) have increased their dividends per share by an average of 4.2% compounded annually during the same period.

Duke Energy aims to increase its dividend per share by 4%–6% annually for the next few years. This target is in line with the industry average. Duke Energy’s dividend growth is expected to be driven by its earnings growth around similar levels.

Read Analysts’ Top 5 Favorite S&P 500 Utilities Stocks for more information.

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