Duke Energy Stock Is My Safest Dividend Investment (NYSE:DUK)

JamesBrey/iStock via Getty Images


On June 26, 2020, I wrote an article called “Duke Energy: One Of The 6 Must-Own Dividend Stocks”. Duke Energy (NYSE:DUK) was indeed one of the first 6 stocks of my dividend growth portfolio, which I established in June of 2020. Now I have 22 different stocks in my portfolio. 2 of them are utilities – the full list can be seen in my Seeking Alpha bio. When I buy stocks I always look for quality first. However, I also look for stocks that I enjoy. Companies that fascinate me. I also own stocks that just make sense. Duke Energy is one of these stocks. I don’t know where the stock is trading most of the time. I couldn’t even tell you if it’s at its all-time high or 5% below it. Duke is boring. And that’s a good thing as it’s the safest dividend stock in my portfolio.

In this article, I will write a much-needed update and explain why I like Duke so much.

Putting The “Q” In Quality…

With a market cap of $81 billion, Duke is America’s second-largest regulated electric utility company. Headquartered in Charlotte, North Carolina, the company operates in the Carolinas, Indiana, Ohio, and Kentucky, as well as the Sunshine State, Florida.

Duke generates roughly 86% of its earnings from regulated electricity. 9% from gas, and 5% from commercial renewables.

Utilities are among the most defensive investments in the world for the obvious reason that people and companies need electricity. The only cyclical aspect of the business is that higher economic growth boosts electricity needs. Industrial and commercial demand is much more volatile than residential demand, which is mainly dependent on secular trends like the adoption of technology and migration. In 2021, the company saw a 1.6%

Read More