#7 - Duke Energy (NYSE:DUK)
Duke Energy Corp. (NYSE: DUK) is one of the nation’s largest electric and gas utility companies. Utility companies are known for their reliable revenue and earnings which sustain solid dividends. In the case of Duke Energy, the company has a dividend yield of 3.58% and that dividend has been growing for 20 consecutive years.
But there are two reasons why DUK stock is an intriguing choice for investors looking for high-yield dividend stocks in the energy sector. First, an increasing amount of the company’s revenue is coming from renewable energy. And second, Duke is the second-largest nuclear reactor operator in the United States (measured by capacity). The stigma attached to nuclear power is going away as the world looks for truly clean energy solutions.
Utility companies are not known for strong growth as evidenced by DUK stock’s total return of 51.66% in the last five years. However, the stock is up 19.3% in 2024 and over 31% in the last 12 months.
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
- $117.12
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $121.69 (3.9% Upside)
You've heard that the United States is achieving record oil production in 2024. This is true, but it's not because of new drilling sites. U.S. production growth is flat as regulations remain in place that create obstacles for new drilling. For that reason, many oil and gas companies have prioritized stock buybacks and dividend increases at the behest of their shareholders.
However, oil production is likely to increase regardless of the outcome of the 2024 election. Despite the undeniable transition towards renewable energy, the world will continue to need oil for decades. And both political parties are beginning to coalesce around the idea that more production (and lower costs) will facilitate that transition.
With the average dividend yield of S&P 500 stocks hovering around 1.3%, there are many companies that can provide a sustainable dividend with an above-average yield as a nice boost to what is likely to be a strong total return.
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