#7 - Duke Energy (NYSE:DUK)
Like Duke Energy (NYSE:DUK), a utility giant has not been immune to the novel coronavirus. However, it doesn’t get much more boring when it comes to boring stocks than flipping a light switch and having the power come on. But that’s the business that Duke is in, and it does it better than many of its peers.
In its most recent earnings report, Duke said it projects a downside impact of 25 cents to 35 cents to its 2020 earnings per share EPS. This will be due to the retail load declines from the pandemic.
The coronavirus is creating uncertainties for Duke Energy relative to the recovery. If the economic recovery does not happen as quickly as expected, that could be a headwind. After all, residential power use can’t hold a candle to what Duke Energy and other utilities can get from commercial business. However, the opposite can also be true. If the economy bounces back quickly and more smoothly than expected, that could be a catalyst for the stock.
And investors can, and should, consider Duke Energy stock because the company is known for paying a reliable dividend. In fact, the company has paid a dividend for 94 consecutive years, increasing the dividend in each of the last 13 years.
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
- $108.28
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $122.23 (12.9% Upside)
At a time like this, investors can use a little safety. When it comes to your portfolio, dividends are kind of like that paid-off, reliable sedan, or minivan. It may not be sexy. It may not be all that fun to drive. And it won’t be the kind of car you brag about at your neighborhood barbecues (whenever we’re allowed to have those again).
But what they lack in style, these stocks make up for in substance. These stocks aren’t known for getting out over their skis, but they also typically move in a reasonable correlation to the broader market. This means that you can count on reasonable capital growth in any market condition. And because many of these stocks pay out a dividend, you can also enjoy a predictable revenue stream just for owning the stock.
These are interesting times. And while the novel coronavirus may have disrupted graduations, vacations, and even your job, you don’t have to let it wreck your portfolio. Because even as the economy re-opens, it’s unclear what the post-pandemic economy will look like.
And that’s where a flight to safety comes in. Look, even Bank of America (NYSE:BAC) says that there may not be a better time to invest in stocks. Gold may be attractive. And you can keep cash on the sidelines. But at some point, you’ll regret not getting in the game. However, getting in the game doesn’t mean you have to take a lot of risks.
The stocks in this presentation help give you the best of both worlds. In addition to having an opportunity for reasonable growth, you’ll enjoy the benefit of resting comfortably as the economy continues to adjust.
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