How Duke Energy’s Dividend Yield Fares against Its Peers



Duke Energy

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.

DUK stk

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.

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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.

To learn more about utilities’ (XLU) (VPU) chart indicators and where they might go from here, read XLU: Where Utilities Might Go from Here.


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