Comparing Duke Energy’s Dividend Yield with Its Peers

Duke Energy (DUK) is expected to pay a dividend of $0.93 per share in the fourth quarter, which is ~4% higher than the same quarter the previous year. The ex-dividend date is February 14. The dividend will be paid on March 18. Currently, Duke Energy offers a yield of 4.2%, which is higher than peers’ average of 3.3%. The dividend yield has been higher than its peers’ average in the last five years. The company’s dividend profile looks stable due to its earnings.

Duke Energy generates a large portion of its earnings from regulated operations, which facilitates earnings and ultimately dividend stability. The company paid a cash dividend for the past 92 consecutive years. Duke Energy’s peer and one of the largest regulated utilities, Southern Company (SO) is trading at a dividend yield of 5.0%, while NextEra Energy (NEE) offers a yield of 2.7%.

Duke Energy’s dividend growth for the last several years was below broader utilities’ dividend growth. In the last five years, Duke Energy managed to increase its dividend per share ~3% compounded annually. Utilities (XLU) at large increased their dividend per share ~4%. Southern Company increased its dividends 3.4%, while NextEra Energy increased its dividends ~11%.