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Duke Energy Increased Its Quarterly Dividend by 4.2%

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DUK’s 92nd consecutive annual dividend

The largest regulated utility in the country, Duke Energy (DUK), increased its quarterly dividend by 4.2% to $0.93 per share. In the last quarter, it paid a per-share dividend of $0.89. The dividend is payable on September 17 to shareholders of record on August 17. With this increase, Duke Energy is expected to pay annualized dividends of $3.71 per share in the next 12 months.

Duke Energy is trading at a dividend yield of 4.6%—higher than broader utilities’ average dividend yield of 4.2%. It’s also trading at a premium yield to its five-year average yield of 4.1%.

Yields

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Dividend yields

Duke Energy paid a cash dividend for the past 92 consecutive years. It’s 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 2.7%. Dominion Energy (D) is trading at a dividend yield of 5.0%.

Dividend growth

In the last five years, Duke Energy managed to increase its dividend per share by 2.9%, compounded annually. Duke Energy’s dividend growth during this period was below broader utilities’ dividend growth. Utilities at large (XLU)(IDU) increased their dividend per share ~4%. Southern Company increased its dividends by 3.4% while NextEra Energy increased its dividends by 10.4%.

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