Duke Energy, a utility company based in Charlotte, N.C., has been recognized as one of the top dividend stocks due to its impressive growth trajectory and strong dividend. The company serves over 8 million electricity customers and 1.6 million natural gas customers across the Eastern U.S. The utilities sector has been performing exceptionally well, with a 14% increase year-to-date, outpacing the overall stock market.
One of the key drivers behind this growth is the surge in artificial intelligence, which has led to increased expectations for energy demand. Duke Energy plans to capitalize on this trend by forecasting 5%-7% earnings growth over the next five years. While this growth rate may not match that of tech giants, it is an impressive feat for a utility company, which typically offers lower single-digit growth rates.
Apart from its growth prospects, Duke Energy also offers a quarterly dividend of $1.025 per share, providing investors with a 4% annualized yield. The company has increased its dividend for 12 consecutive years, and another hike is expected in August. For conservative investors seeking stability, Duke Energy’s strong financial standing, indicated by its BBB+ credit rating from S&P Global, and low volatility make it an attractive investment opportunity.
Recently, Duke Energy’s shares broke out of a flat base by surpassing a 99.92 buy point on May 1st
