#2 - Duke Energy (NYSE:DUK)
Duke Energy (NYSE: DUK) - Duke Energy is an example of why location matters. DUK’s primary markets are Central Florida and the Carolinas, two states that have a supportive regulatory environment. Plus, both states are showing strong residential customer growth of around 1.5%, giving them a growing base for their services. In Florida in particular, the company services the fast-growing cities of Tampa and Orlando. The combination of a growing economy and a recent string of unusually warm weather are causing revenue and earnings to climb at a slow, stable pace. Provided there is no softening in the economy, analysts foresee their growth trend continuing.
But an attractive service area is only part of the story. Duke is making a huge investment in its electrical grid and natural gas infrastructure, to the tune of $42 billion. This is news to investors ears as an investment like this will help support its annual earnings growth, which is currently around 6%. As part of this capital spending plan, Duke will put some money into its small renewable energy business.
Like the utility index, Duke’s stock is down about 10% since November, but the stock is up over 10% since hitting its 52-week low in June. One of the most attractive features of owning stock in Duke is its 4.5% dividend yield which is among the highest of all its competitors. Historically a yield above 4% means DUK still has room to rise.
About Duke Energy
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest.
Read More - Current Price
- $112.68
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $121.85 (8.1% Upside)
