Is Duke Energy a Buy?

PUBLISHED Dec 28, 2022, 10:42:57 PM        SHARE

imgTobi Opeyemi Amure

Established in 1904 and headquartered in Charlotte, North Carolina, Duke Energy Corporation is a natural gas distribution company. It offers infrastructure in gas utilities, and commercial renewables, alongside other energy-related services.

This company is not a newcomer to the utility stock scene, and it has achieved high opening and closing prices. Nonetheless, nothing stays constant in the stock market. Although Duke Energy is a good utility stock with dividends, is it a good buy at the moment?

This article will answer that question, and also offer reasons why. You can read this article for other utility stocks that you can consider if you wish to expand your investment portfolio.

10 Utility Dividend Stocks with High Yields

image description

Companies make a profit, and dividends are the portion of a company’s profit that its shareholders obtain. Dividend yields are a percentage representation of the annual payments that shareholders receive from a company. It also expresses what investors can expect from that stock's future earnings.

Apart from dividend yields, the stocks on our list are chosen for their Earnings Per Share, total customers, and other factors. The various factors explaining why they were chosen are covered here.

  • National Grid Plc (NGG): 5.32% yield
  • Dominion Energy (D): 4.73% yield
  • Edison International (EIX): 4.45% yield
  • The Southern Company (SO): 4.19% yield
  • PPL Corporation (PPL): 4.14% yield
  • Duke Energy Corporation (DUK): 4.02% yield
  • Entergy (ETR): 3.68% yield
  • Exelon (EXC): 3.30% yield
  • Sempra Energy (SRE): 3.14% yield
  • NRG Energy (NRG): 2.86% yield

National Grid Plc (NGG)

National Grid Plc is the best high dividend utility stock that any investor can get their hands on. Established in 1989, this utility company deals in the transmission and distribution of gas and electricity.

This company offers a dividend per share of $3.11, with a dividend yield of 5.32%. It also has a positive Earning Per Share (EPS) of $13.02 and a Price to Earnings (PE) ratio of 10.02. All of these factors combine to make National Grid Plc a good investment.

Dominion Energy (D)

William W. Berry founded Dominion Energy in 1983, with its headquarters located in Richmond, Virginia. This company operates in the gas infrastructure, power generation infrastructure, and power delivery infrastructure.

With a dividend yield of 4.73%, Dominion Energy earns its place as a good utility stock with dividends. It also has a dividend per share of $3.74, an EPS of -$0.31, and a PE ratio of -631.31%. With such an EPS and PE ratio, Dominion Energy is not a good buy at the moment.

Edison International (EIX)

As one of the largest electric utility holding companies, Edison International offers good utility stocks with dividends. This company is headquartered in Rosemead, California, and offers clean energy through its independent companies like the Southern California Edison Company.

Edison International has a dividend per share of $2.68 and a dividend yield of 4.45%. This stock is also a good buy with its $1.53 EPS and PE ratio of 39.305. The Southern Company (SO) The Southern Company is an electric utility holding company that sells electricity. Besides the Traditional Electric Operating Company, this company also operates in the Southern Company Gas and Southern Power segments.

The Southern Company offers a dividend per share of $2.54 and a dividend yield of 4.19%. This makes it a high dividend utility stock. With an EPS of $2.99 and a PE ratio of 20.27, The Southern Company is a good buy.

PPL Corporation (PPL)

This is a nuclear electric power generation company that also offers electricity delivery services. PPL is one of the best utility stocks around with a dividend yield of 4.14%, making it a good buy. It offers a dividend per share of $1.05, an EPS of 0.98, and a PE ratio of 25.5.

Duke Energy Corporation (DUK)

Duke Energy has a dividend yield of 4.02%, which makes it a utility stock with high dividends. Its dividend per share is $3.80, while its EPS and PE ratios are $2.74 and 34.55, respectively. All of these factors make Duke Energy a good buy.

Entergy (ETR)

This is another nuclear energy power generation corporation that offers top utility stocks. It is intended to provide the cleanest large-scale power generation in the United States. This includes 8000 megawatts of nuclear power and 30,000 megawatts of electric power.

The dividend yield of Entergy is 3.86% and the dividend per share is $3.99. The PE ratio and EPS of Entergy are 17.163 and $6.02, respectively, making it a good buy. Exelon (EXC) Exelon Corporation is a nuclear electric power generation company. It's one of the companies in the utility sector with the best utility stocks for investors.

The dividend yield of Exelon is 3.30%, while its dividend per share is $1.51. This corporation has a PE ratio of 22.774 and an EPS of $2.01, making it a good buy.

Sempra Energy (SRE)

Sempra Energy is a gas distributor that was established in 1996, with its headquarters in San Diego, California. The infrastructure of this company enables it to offer gas and electric services.

As one of the best utility stocks that investors can go for, this company offers a dividend yield of 3.14%. Sempra Energy’s dividend per share is $4.10, while its PE ratio and EPS are 10.02 and $13.02, respectively. All of this makes this stock a good buy for any investor.

NRG Energy (NRG)

NRG Energy Incorporated is an electric utility company that deals with the production, distribution, and sale of energy services. This company was founded in 1989, and it’s located in Princeton, New Jersey.

NRG Energy offers high dividend utility stocks with a dividend yield of 2.86%. It offers a dividend per share of $0.93, an EPS of $16.57, and a PE ratio of 1.96. This makes it a good buy at the moment.

7 Best Utility Stocks to Buy Now for Income

image description

Apart from high dividends, other factors make a top utility stock. Some of these factors include stable price appreciation and their return on investment. Below are the best utility stocks to buy based on their income generation ability at the moment.

  • The Southern Co. (SO)
  • Sempra Energy (SRE)
  • Dominion Energy, Inc. (D)
  • NextEra Energy Inc (NEE)
  • NRG Energy, Inc. (NRG)
  • American Water Works Co. Inc. (AWK)
  • American Electric Power Co., Inc. (AEP)

These are not the only utility stocks worth purchasing right now, if you are interested in more, you can check here.

Honorable Mentions

Besides the utilities mentioned above, others deserve a mention. These honorable mentions would have been one of the top utility stocks if not for some unfortunate circumstances.

One Gas Inc. (OGS)

Winter Storm Uri caused a lot of damage in 2021, and One Gas Inc was on the receiving end of this. This company experienced a sharp drop in its gas supply business, despite the high demand for gas that year. Notwithstanding, this company is already on its recovery path, and it has experienced a 28% increase in share price.

Portland General Electric Company (NYSE: PGE)

Bad buys are inevitable for even experienced investors, and Portland General Electric Company was one such buy. The shares of this company dropped by 14% within 3 years.

Nonetheless, this company has grown its EPS by 7.1% and also increased its revenue by 6.8%. This shows that this company is slowly rising once again.

Algonquin Power & Utility Corp. (AQN)

In the last two trading sessions, AQN lost up to 35% and $3 billion of its market cap. For a defensive stock, this is quite the loss, making many investors apprehensive. Nonetheless, Algonquin remains a utility company, so investors can be certain of stable dividend payments.

Final Thoughts

Duke Energy is a high dividend utility stock with a dividend yield of 4.02%. When this is paired with a good dividend per share, EPS, and PE ratio, Duke Energy is a good buy. So, if you’ve been contemplating this utility stock, you could go for it.

Besides Duke Energy, we’ve also offered other top utility stocks that investors can consider.

Frequently Asked Questions (FAQ)

Do Utility Stocks Pay High Dividends?

Yes, the best utility stocks pay high dividends to shareholders. Although water utility stocks generally do not pay high dividends, electric utility stocks do.

What Is the Best Utility Stock to Buy Right Now?

The best utility stock on the market at the moment is National Grid Plc. This company offers a 5.32% dividend yield, a $3.11 dividend per share, and a positive EPS and PE ratio.

Why Do Utility Stocks Pay High Dividends?

Utility stocks offer consistent dividends and a stable flow of income for investors. Compared to the high dividends that other volatile stocks offer, many investors value this stability. As many investors are rushing into utility stocks, their valuations have increased, offering them more to pay investors.

Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
What is a Stock Selection Guide?

The Stock Selection Guide is a great stock picking methodology that uses a company's fundamentals to assess its investment viability.

Japan Surprises

The Bank of Japan surprised everyone may lifting the 10-year yield curve cap to 0.50% from 0.25%.

The Top Value Investments

These are the top value stock ideas picked by the top investors on the platform.

The Top Financial News and Analysis

The top articles and commentary on recent and relevant financial, economic, and business news.

The Top Macroeconomic News and Analysis

The articles and commentary on world macroeconomics that are relevant now

The Top Stocks Analyzed Using the Stock Selection Guide (SSG)

These top stocks were analyzed using the stock selection guide and picked by the top investors on the platform.

The Year Winding Down

Stock Market Commentary

Why is Book Value Important?

Book value is a investment metric that new investors need to understand. Book value gives investors an insight into a stock's intrinsic value.

Is Entergy Corp a Buy?

Entergy is trading at a significantly lower valuation than its competitors. As a result, the company is currently undervalued, and better to buy it. Read more.

Is Exelon a Buy?

Exelon Corp. ( EXC ) is getting a lot of attention these days, with analysts and investors trying to figure out if the company is worthy. Read more!

META Lesson 2: Accounting Inconsistencies and Consequences

In my last post I used Facebook's recent troubles to talk about the importance of corporate governance

How to Strengthen Your Four Walls of Budgeting

When you are in debt, it may feel like you are digging yourself deeper with every dollar you spend. And as the bills start mounting and collection agencies are pressuring you to pay, it’s easy to panic and forget your priorities. However, knowing the four walls of budgeting can help remind you what is most important in your budget. So if you are having a hard time making ends meet, here are a few ways you can strengthen your four walls of budgeting and get closer to your financial goals.

What Are The Best Stocks To Buy Now?

As an investor, one of the trickiest things to figure out is which stocks to buy and when. The holiday season and post-midterm climate alter the landscape a bit. Additionally, many companies are examining their year-end figures, with some exceeding recent expectations and others falling notably short. As a result, it’s hard to choose the right investments. If you’re trying to figure it out, here are some of the best stocks to buy now.

Let’s Debunk These Top 7 Credit Score Myths That Often Misguide You

Your credit history and credit score are how a lender determines your creditworthiness. A good credit score shows the lender that you have a lower risk. And a poor credit score implies otherwise. No time to read this now? Pin it for later. Today, there is a ton of information about the importance of your credit scores and the need to check them regularly. But you don’t have to check your score daily. That’s just a myth. There are other credit score myths out there, but this article will debunk the top seven credit myths.

Positioning to “Time” the Stock Market

You can’t time the market! Many have tried, and many have failed. But there is an acceptable way for investors to time the market: what about positioning assets rather than predicting the future? As the saying goes: time in the market is better than timing the market.

23+ Best Places To Buy Cheap Clothes [Updated]

You can buy cheap clothes and still look stylish. However, there is no denying that buying an array of clothing can be expensive. One way to cut costs is to buy second-hand clothes. But there are ways to buy new clothes without spending a fortune on your wardrobe if you want something new. This blog post will show you 15+ of the best places to buy cheap clothes.

Doves In Hawk Clothing

When the time comes, will central banks prioritise employment or inflation? The goals of central banks are price stability and maximum employment. For much of the last four decades there was little conflict between the two. Strong disinflationary forces meant that unemployment, outside of recessions, could be kept low.

Early Retirement Hindsight: What I Would’ve Done Differently

I feel truly blessed to have been able to pull off an early retirement. I take great pride in being able to take the leap at the age of 51. It came after a long career with a less than a 6 figure salary. Still, after experiencing early retirement for many years and knowing what I know now, I often think about what I would have done differently. Allow me to share my early retirement hindsight.

Making 2022 Feel Much Better

If you started investing in the S&P 500 over the past 5 years, 2022 has erased all your gains. This chart shows a portfolio that’s been dollar-cost averaging into the S&P 500 since the beginning of 2018. COVID caused a small speed bump, but the market quickly shrugged it off. By late 2021, this investor was up 80% over 4 years, or 16% per year.

Dividend Yield Is 2022’s Upside Outlier For Equity Factor Returns

The US equity market has been clawing back some of its losses recently, but reviewing results through a factor-risk lens shows dividend yield leading the field with the only positive performance for 2022, based on a set of ETF proxies.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin