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%.
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.
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.