Duke Energy (DUK), the second-largest utility by market capitalization, has a long dividend payment history. It has paid dividends to its shareholders for 368 consecutive quarters. DUK stock is currently trading at a dividend yield of 4.5%, which is higher than utilities’ (XLU) average yield of 4.2%.
Duke Energy managed to increase its per-share dividend by 2.9% compounded annually in the last five years. It derives most of its earnings from regulated operations, which leads to stable earnings and dividends.
Duke Energy’s earnings are expected to increase 4%–6% annually for the next few years, which is in line with the industry average. As a result, its annual dividend per share growth is expected to be close to that level.
Analysts’ recommendations and price targets
Duke Energy stock offers a potential upside of 3.8% for the next 12 months. It has a mean target price of $82.60. Currently, Duke Energy is trading at $79.50.
Among the 17 analysts tracking DUK, two of them have rated the stock a “strong buy,” while four have recommended a “buy.” Eight of them have rated it a “hold,” and two have recommended a “sell.” One analyst has rated it a “strong sell.”
Its peer Exelon (EXC) offers an upside potential of 3.4%, given analysts’ mean price target of $43.60. It’s currently trading at $42.20.