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Duke Energy’s Dividends before Its Ex-Dividend Date

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Ex-dividend date

Duke Energy (DUK), the second-largest utility by market capitalization, declared a dividend per share of $0.89 on February 5, 2018. The ex-dividend date for these dividends is February 15. The dividend will be paid on March 16, 2018.

Duke Energy is trading at a dividend yield of 4.7%—significantly higher than broader utilities’ average yield of 3.6%. In comparison, broader markets yield ~1.7%.

DUK ylds

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Dividend yield

Duke Energy is one of the top-yielding utilities among the S&P 500 Utilities Index (XLU). Duke Energy’s dividend yield has always been higher than its peers’ average in the last five years.

Southern Company (SO) is trading at a dividend yield of 5.2%, while NextEra Energy (NEE) offers a yield of 2.6%. Dominion Energy (D) is trading at a dividend yield of 4.5%.

Dividend growth

In the last five years, Duke Energy managed to increase its dividend per share 2.9% compounded annually. Duke Energy’s dividend growth during this period was way below broader utilities’ dividend growth. Utilities at large (XLU) (IDU) increased their dividend per share ~4% compounded annually during the same period.

Southern Company increased its dividends 3.4%, while NextEra Energy increased its dividends 10.4% compounded annually in the last five years.

Next, we’ll discuss what could impact Duke Energy’s dividends in the longer term.

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