Duke Energy Corporation, through its subsidiaries, operates as an energy company in the United States. The company 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 to customers in the Southeast and Midwest regions. It generates electricity through coal, hydroelectric, natural gas, oil, renewables, and nuclear fuel. This segment also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and other load-serving entities. The GU&I segment distributes natural gas to customers in the residential, commercial, industrial, and power generation natural gas sectors; and invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2006. Duke Energy Corporation was founded in 1904 and is headquartered in Charlotte, North Carolina.
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Duke Energy submits 2026 Carolinas Resource Plan to South Carolina regulators
Duke Energy has submitted its 2026 Carolinas Resource Plan to the Public Service Commission of South Carolina, outlining a strategy to meet the state's growing energy needs through a mix of natural gas, storage, solar, nuclear, and grid-edge programs. The plan, filed August 14, includes a 1,400 megawatt combined cycle facility in Anderson County, an RFP for 400 megawatts of standalone storage in South Carolina, and evaluation of potential new nuclear sites in Cherokee County, South Carolina, and Stokes County, North Carolina. Duke Energy says the proposed resource mix, combined with the recently approved merger of Duke Energy Carolinas and Duke Energy Progress, will deliver more than $5 billion in cost-saving benefits to customers. The company has also applied for U.S. Department of Energy loans that could represent billions of dollars in additional customer savings. The Public Service Commission of South Carolina will hold a hearing on the plan in April 2027 and issue an order by June 2027.
Duke Energy Completes $1.75 Billion Composite Units Offering
Duke Energy has completed a $1.75 billion Composite Units Offering, adding several new co-lead underwriters to the transaction. The offering consists of 35,000,000 units priced at $50 each, with the total principal split into two $875 million components. The financing move focuses on raising capital that could affect Duke Energy's balance sheet, funding plans and financial flexibility. The expanded syndicate of co-lead underwriters points to broad market participation in the offering.
Duke Energy Reports Higher Q2 2026 Revenue and Net Income, Plans US$10 Billion Equity Issuance by 2030
Duke Energy reported second-quarter 2026 revenue of US$7,592 million and net income of US$1,092 million, both higher than a year earlier, alongside six-month revenue of US$16,770 million and net income of US$2,642 million. The company also outlined plans to issue US$10 billion in common equity by 2030 to fund an extensive capital program focused on meeting rising power demand, especially from data centers, while managing regulatory pushback on spending and rates. The planned equity issuance makes financing risk and potential shareholder dilution key near-term considerations, though the core growth narrative around data center-driven demand does not change materially with this update.
Duke Energy Progress reaches settlement to cut proposed North Carolina rate increase by more than half
Duke Energy Progress has reached a settlement with the North Carolina Public Staff and other stakeholders that will reduce its proposed rate increase by more than half. The agreement, which follows a similar deal for Duke Energy Carolinas customers in July, would result in an average annual increase of 3.4% over two years if approved by the North Carolina Utilities Commission. It includes an accelerated customer refund of $120 million in annual federal tax credits for nuclear, solar, and hydro generation, a new refund rider with interest if planned infrastructure upgrades are not completed on time, and reduced customer costs for Roxboro Steam Plant reliability upgrades due to federal funding. Duke Energy will also contribute an additional $10 million to low-income bill assistance and weatherization programs, on top of a prior $10 million contribution for Duke Energy Carolinas customers. New rates would take effect January 1, 2027, pending regulatory approval.
Duke Energy Stock Could Be 29% Overvalued Based on Dividend Model
Duke Energy's stock could be 29.3% overvalued according to a Dividend Discount Model analysis, which estimates an intrinsic value of about $97 per share compared to the current price of $125.43. The model uses a dividend per share of $4.67, a return on equity of roughly 9.1%, and a payout ratio near 75%, implying a dividend growth rate of about 2.3% annually. In contrast, earnings-based multiples suggest the stock may be undervalued, with a current P/E of 19.3x trading below the Electric Utilities industry average of 21.4x and a fair P/E of 23.9x based on fundamentals. The company's push to support data center expansion through its Customer Protection Plus framework adds to the mixed valuation picture, as higher capital needs or execution risks could weigh on investor sentiment. Overall, the stock does not screen as a straightforward bargain or an obvious overpricing, with the key question being whether data center plans can justify the current price and required capital.
White House Expands AI Data Center Ratepayer Protection Pledge to Nearly 200 New Signatories
The White House is expanding its voluntary Ratepayer Protection Pledge for AI data centers, adding nearly 200 utilities, governors, electricity cooperatives, public power providers, and developers to the initiative. The expanded pledge aims to ensure companies building and powering AI data centers cover the costs of electricity generation and transmission infrastructure instead of passing those expenses on to residential customers. Major tech firms including Alphabet Inc., Microsoft Corp., Meta Platforms Inc., Oracle Corp, OpenAI, xAI, and Amazon.com Inc. had already signed, and the new signatories include major utilities such as NextEra Energy, Inc. and Duke Energy Corp. The administration said the expanded pledge now covers about 80% of the electricity delivered to U.S. homes and businesses. President Donald Trump is expected to formally announce the expansion on Thursday alongside Energy Secretary Chris Wright, EPA Administrator Lee Zeldin, and the governors of Louisiana, Georgia, Nebraska, and Idaho.
Goldman Sachs raises global data center capacity forecast to 217 GW by 2030
Goldman Sachs has raised its forecast for worldwide data center capacity to 217 gigawatts by 2030, up from a prior estimate of 168 gigawatts and more than double the 101 gigawatts expected in 2025. The additional 116 gigawatts of capacity would require roughly $6 trillion in capital spending, a level the bank believes can be supported by current hyperscaler investment plans. Goldman favors utilities including FirstEnergy, Xcel Energy, Duke Energy and Sempra, as well as independent power producers Talen Energy, Vistra and NRG Energy, which it expects to benefit from rising power prices and growing data center-related power contracts. Among data center operators, Goldman maintained a Buy rating on Digital Realty, citing persistent supply-demand tightness and AI infrastructure spending. The bank estimates data center capacity will grow at a 17% compound annual rate between 2025 and 2030, with 60% to 70% of new capacity additions located in the United States, and projects global data center power consumption will rise 170% by 2030 compared with 2025 levels.
Duke Energy Unveils Customer Protection Plus to Deliver Multi-Billion Dollar Savings
Duke Energy introduced its Customer Protection Plus framework, a program designed to deliver multi-billion dollar savings to customers while supporting rising power needs from data centers. The initiative relies on long-term agreements with data center clients, tying new infrastructure investment to shared value and reliability commitments. The framework aims to manage rapid grid expansion while keeping costs and system impacts in check for households and businesses. Duke Energy stock is trading at $129.26, up 10.1% year to date, with returns of 11.7% over the past year and 53.6% over three years.
Duke Energy raises quarterly dividend to $1.085 per share
Duke Energy has declared a higher quarterly cash dividend of $1.085 per common share, alongside a scheduled payout on its Series A preferred stock in mid-September 2026. The stock has posted a one-month share price return of 3.37% and a year-to-date return of 10.06%, with a five-year total shareholder return of 48.37% reflecting the contribution of reinvested dividends. The most followed fair value estimate places Duke Energy at about $137.83 per share, suggesting the stock is roughly 6.2% undervalued relative to its last close of $129.26, supported by expectations of robust load growth from major economic development wins such as a $10 billion data center project in North Carolina. However, a discounted cash flow model from Simply Wall St yields a fair value of $96.97 per share, which would imply the current price is expensive rather than cheap.
Zacks Highlights NextEra Energy, Duke Energy, American Electric Power, and Ameren as Utility Stocks to Buy
Zacks Equity Research has identified NextEra Energy, Duke Energy, American Electric Power, and Ameren as four electric utility stocks worth buying despite industry headwinds. The Zacks Utility-Electric Power industry currently carries a Zacks Industry Rank of 158, placing it in the bottom 36% of more than 247 Zacks industries, and the industry's recent earnings estimate of $2.61 in June 2026 reflects a 6.5% decline from June 2025. However, the selected stocks each hold a Zacks Rank of 2, or Buy, and have market capitalizations above $30 billion. NextEra Energy plans to invest more than $94.1 billion through 2030, Duke Energy has a $103 billion capital plan for 2026 through 2030, American Electric Power is executing a $78 billion investment plan over the same period, and Ameren expects capital deployment in excess of $31.8 billion from 2026 to 2030. The industry has gained 17.3% over the past 12 months, outperforming its sector's 13.5% rise but trailing the S&P 500's 23.7% gain, and it trades at a forward price-to-earnings ratio of 15.47 times.
Duke Energy Carolinas reaches agreement to cut proposed rate increase by more than half
Duke Energy Carolinas has reached an agreement with North Carolina Public Staff and other stakeholders that reduces its proposed rate increase by more than half. The settlement, which still requires approval from the North Carolina Utilities Commission, would result in an average annual increase of 3.7% over two years, with a 9.8% return on equity and a 53% equity component of the capital structure. Duke Energy will also contribute $10 million to low-income bill assistance and weatherization programs, and the company agreed to pursue similar terms for its Duke Energy Progress customers. If approved, new rates would take effect on January 1, 2027.
Duke Energy Florida program offers up to $141 in annual bill credits with minimal requirements
Duke Energy Florida's EnergyWise Home program offers up to $141 in annual bill credits for homeowners and renters with minimal requirements and little effort needed from enrolled customers. Customers enroll select appliances, allowing Duke Energy Florida to reduce their run time during periods of high energy demand, with a small device installed on each appliance at no charge. The bill credits include $24 annually for heating, $45 for cooling, $30 for a pool pump, and $42 for a water heater, totaling $141, while mobile home residents can receive up to $111 in annual credits. Most customers start saving immediately without changing their habits, as long as they use at least 600 kilowatt-hours of energy per month. Melissa Seixas, Duke Energy Florida state president, called the program one of the easiest ways for customers to lower their energy bills.
Duke Energy raises quarterly common stock dividend to $1.085 per share
Duke Energy declared a quarterly cash dividend on its common stock of $1.085 per share, an increase of $0.02, payable on September 16, 2026, to shareholders of record on August 14, 2026. The company also declared a quarterly cash dividend on its Series A preferred stock of $359.375 per share, equivalent to $0.359375 per depositary share, with the same payment and record dates. Duke Energy has paid a cash dividend on its common stock for 100 consecutive years.
Aging in Place Costs $36,000 a Year, and a Dividend-Growth Portfolio May Fund It Best
Aging in place costs roughly $36,000 a year for a modest service package, and almost no one funds it deliberately before they need it. Services inflation runs at between 3.4 and 3.8% annually, and with Social Security's 2026 COLA landing at just 2.8%, benefit checks quietly buy less care each year. Funding $36,000 annually requires $1,028,000 at a 3.5% yield or $600,000 at 6%, with the lower-yield, dividend-growth portfolio winning by year 12. A 3.5% yielding portfolio that grows income 7% annually nearly doubles the payout in 10 years and more than doubles it in 11. The lower-yield tier may win over a 25-year horizon if the payout grows, while a 10% yielding portfolio with a flat distribution loses purchasing power every year that services inflation continues.
Duke Energy Shifts Focus from Offshore Wind to Nuclear Power Expansion
Duke Energy is pivoting from offshore wind to expanding nuclear power capacity, citing rising costs, supply constraints, and policy uncertainty around offshore wind projects. The move aims to meet increasing electricity demand from data centers and advanced manufacturing in the Carolinas. The company's stock currently trades at $126.86, with a one-year return of 11.3%, a three-year return of 55.1%, and a five-year return of 48.1%. The decision aligns with a broader strategy to rely on long-duration, capital-intensive assets that can run continuously, rather than variable offshore projects facing cost inflation and supply bottlenecks. Investors will be watching regulatory responses in the Carolinas, cost assumptions for new nuclear proposals, and whether large customers sign long-term agreements to underpin these projects.
Duke Energy Florida delivers $50 million in customer savings, avoids 2027 base rate increase
Duke Energy Florida is delivering $50 million in customer savings in 2027 by accelerating the return of tax credits over one year instead of the standard 15-year lifespan of its Powerline Battery Energy Storage System. This move avoids the 2% base rate increase outlined in its multiyear rate agreement for 2025 to 2027. Over the next 10 years, the company plans to build 1.4 gigawatts of battery storage, generating more than $500 million in investment tax credits that will be passed directly to customers. Duke Energy Florida currently has six battery sites, with the Powerline system in Citrus County set to become the seventh when completed next year. The company also aims to establish 12 new solar energy sites by the end of 2028, saving customers approximately $3 billion in displaced fuel costs over their lifetimes, and passed on about $65 million in production tax credits from solar sites to customers in 2025.
Duke Energy outperforms utilities sector year-to-date but trails its electric power industry
Duke Energy has returned 6.9% so far this year, outpacing the average 6.2% gain for the broader Utilities sector, which includes 111 companies and ranks 14th out of 16 Zacks sectors. However, within the more specific Utility - Electric Power industry, which comprises 63 companies and has gained an average of 7.7% year-to-date, Duke Energy is slightly underperforming. The company holds a Zacks Rank of 2, or Buy, with its full-year earnings consensus estimate edging 0.1% higher over the past three months. PG&E, another Utility - Electric Power stock also rated a Zacks Rank 2, has matched Duke Energy's 6.9% year-to-date return and seen its current-year EPS estimate rise 0.2% over the same period.
Goldman Sachs Removes Duke Energy from its US Conviction List
Goldman Sachs removed Duke Energy from its US Conviction List as part of its monthly update on July 1, while reiterating a Buy rating on the stock. The removal comes despite Duke Energy reaffirming its fiscal 2026 earnings per share guidance range of $6.55 to $6.80 and a long-term EPS growth target of 5% to 7% through 2030. The utility has signed electric service agreements for 7.6 gigawatts of new data center demand since 2024, including 2.7 gigawatts in the first quarter of 2026 alone, and is in advanced discussions for an additional 15.4 gigawatts. Separately, Morgan Stanley raised its price target on Duke Energy by $4 on June 24 while maintaining an Equal Weight rating.
Duke Energy touted over Coca-Cola for retirement income
Duke Energy is being pitched as a better retirement holding than Coca-Cola, with the article arguing Coca-Cola’s 26 times forward earnings multiple and 2.53% dividend yield offer little margin of safety compared with Duke’s 19 times earnings and 3.3% yield. Duke’s $103 billion five-year capital plan is the largest regulated capital plan in the industry, supported by 7.6 gigawatts of contracted AI data center demand that CEO Harry Sideris calls structural, driving 9.6% earnings base growth through 2030. The utility has posted four straight EPS beats, most recently reporting first-quarter 2026 adjusted EPS of $1.93 versus a $1.80 estimate, and raised its quarterly dividend to $1.065. Sell-side price targets for Duke sit at $138.56 against a recent quote of $125.97, while Coca-Cola trades near its consensus target of $85.97.
Duke Energy Foundation invests $773,000 to strengthen STEM education in Florida
The Duke Energy Foundation is awarding $773,000 to 22 nonprofit organizations and higher education institutions in Florida to expand hands-on STEM learning and prepare students for careers in high-demand industries. The grants include $330,000 for higher education institutions such as the University of Central Florida Foundation, University of Florida, and University of South Florida Foundation, each receiving $75,000. An additional $175,000 goes to Central Florida school foundations, $205,000 to the Greater Tampa Bay Area, $13,000 to North Florida, and $50,000 to the statewide Consortium of Florida Education Foundations. Duke Energy Florida state president Melissa Seixas said the funding supports innovative approaches to sparking interest in STEM fields and developing the future workforce.
NextEra Energy Plans $67 Billion All-Stock Acquisition of Dominion Energy
NextEra Energy announced a $67 billion all-stock deal to acquire Dominion Energy, a move that could position it as a leading provider of infrastructure and energy for major technology platforms amid surging AI power demand. The acquisition would expand NextEra's regulated utility base and strengthen its exposure to data center power demand, particularly in Virginia's key data center region already supported by Dominion. Compared to competitors Duke Energy and Constellation Energy, NextEra may gain an advantage through its massive infrastructure, including transmission, distribution, and generation assets, while Constellation relies on nuclear generation and Duke focuses on regional load growth. NextEra also reported 4 gigawatts of new long-term contracted renewables and storage, with a backlog totaling about 33 gigawatts, and added approximately 100,000 customers in its Florida utilities operation. Analysts rate NextEra as a Moderate Buy with a 13% upside potential, while the stock has gained nearly 10.4% year-to-date but remains below its April 2026 all-time highs.
Duke Energy Launches AI-Powered Bill Insights for Carolinas Customers
Duke Energy has introduced an AI-powered Bill Insights feature in its mobile app for customers in the Carolinas, providing personalized, plain-language explanations of monthly energy bills with a focus on higher summer usage. The rollout reflects a move toward more digital, data-driven customer support in the utility sector. The tool aims to reduce call volumes, improve digital engagement, and potentially support customer satisfaction as Duke Energy plans substantial capital spending and rate actions. The feature is part of a broader narrative of using digitalization and grid data to run the system more efficiently and support long-term earnings stability tied to large infrastructure programs.
Duke Energy spent nearly $1 billion with North Carolina suppliers in 2025
Duke Energy spent nearly $1 billion with North Carolina-based suppliers in 2025, part of a broader $17.2 billion in annual sourcing where more than 97% supports U.S.-based suppliers. The company expects its continued investment in North Carolina suppliers could total nearly $5 billion over five years, supporting jobs and local economies while securing critical grid equipment. Key suppliers include GE Vernova in Goldsboro for transformers and Siemens Energy in Charlotte for gas turbines. Duke Energy says these investments help reduce supply chain risk, sustain domestic manufacturing, and ready the grid for rising energy demand.
Zacks picks Duke Energy over Constellation Energy on valuation, yield, and momentum
Zacks Investment Research says Duke Energy currently has an edge over Constellation Energy, citing stronger earnings estimate momentum, a higher dividend yield, a larger capital investment plan, a cheaper valuation, and better recent share price performance. Duke Energy carries a Zacks Rank #2 (Buy), while Constellation Energy holds a Zacks Rank #3 (Hold). Duke Energy’s forward 12-month price-to-earnings ratio stands at 18.54 times, below Constellation Energy’s 20.46 times and the S&P 500’s 23.15 times. Duke Energy’s dividend yield is 3.32 percent versus Constellation Energy’s 0.65 percent, and Duke Energy shares have gained 9 percent over the past six months while Constellation Energy has declined 27.4 percent. Duke Energy plans to spend 103 billion dollars on capital investments from 2026 through 2030, while Constellation Energy expects to invest about 5.7 billion dollars in 2026 and 4.7 billion dollars in 2027. Constellation Energy’s return on equity is 16.81 percent compared with Duke Energy’s 9.73 percent.
Duke Energy Plans $103 Billion Investment Through 2030
Duke Energy plans to invest approximately $103 billion between 2026 and 2030 to modernize its regulated electric and gas utilities, expand generation capacity, and meet rising electricity demand. Management reaffirmed its 2026 adjusted earnings per share guidance of $6.55 to $6.80 and a 5% to 7% adjusted EPS growth rate projection through 2030, with confidence to earn in the top half of the range beginning in 2028. The company also reaffirmed its 2026 capital expenditure outlook of approximately $17.75 billion, with year-to-date spending totaling $4.19 billion as of March 31, 2026. Duke Energy continues to see increasing demand from large commercial and industrial customers, particularly data centers and advanced manufacturing facilities across its service territories. The company is executing a balanced energy transition strategy that includes expanding renewable generation, investing in battery storage, upgrading natural gas assets, and exploring advanced nuclear technologies.
Morgan Stanley Lifts Duke Energy Price Target to $136
Morgan Stanley raised its price target on Duke Energy from $132 to $136 while maintaining an Equal Weight rating. The adjustment came as part of the firm's monthly review of North American regulated and diversified utilities, noting the sector fell 5.5% in May against a 5.1% gain for the S&P 500. Duke Energy reaffirmed its 2026 earnings per share guidance of $6.55 to $6.80 and its long-term target of 5% to 7% annual EPS growth through 2030.
Zacks Recommends 4 Defensive Stocks as US Inflation Hits 3-Year High
U.S. inflation surged past 4% in May for the first time since early 2023, driven by higher energy prices from the Middle East conflict, making a Federal Reserve rate hike likely. Zacks Investment Research recommends four defensive stocks with positive earnings estimate revisions and strong Zacks Ranks: Duke Energy, Coca-Cola, Arko Corp., and The New York Times Company. Duke Energy has a beta of 0.39 and a dividend yield of 3.37%, Coca-Cola has a beta of 0.35 and a yield of 2.63%, Arko Corp. has a beta of 0.98 and a yield of 1.56%, and The New York Times Company has a beta of 0.95 and a yield of 1.29%. The personal consumption expenditures price index rose 4.1% year over year in May, with core PCE up 3.4%, the highest since October 2023. Markets are pricing in a 25-basis-point rate hike by year-end, which could weigh on the economy and keep markets volatile.
NRC seeks comment on Duke Energy Carolinas nuclear license amendments
The U.S. Nuclear Regulatory Commission is seeking public comment on proposed no-significant-hazard license amendments for several Duke Energy Carolinas nuclear units, focusing on updated thermal-hydraulic methodologies and related technical frameworks. The review is technical in nature and does not materially alter the near-term focus on executing Duke's data center-driven load pipeline, which includes a 15-gigawatt demand pipeline, or the key risk around funding that growth with a stretched balance sheet. Analysts at Mizuho and Barclays recently trimmed their price targets while keeping positive ratings, tying their views to Duke's execution in North Carolina and the regulatory and capital decisions central to the data center catalyst. Duke Energy's narrative projects $37.7 billion in revenue and $6.4 billion in earnings by 2029, requiring 4.8% yearly revenue growth and a $1.3 billion earnings increase from $5.1 billion today. Three members of the Simply Wall St community place Duke Energy's fair value between US$97.58 and US$137.83, highlighting very different expectations.
Duke Energy Named Among 12 Best S&P 500 Stocks for Dividends
Duke Energy Corporation has been named one of the 12 Best S&P 500 Stocks to Buy for Dividends, with an annual dividend yield of 3.41%. On June 11, Barclays analyst Nicholas Campanella lowered the firm's price target on Duke Energy from $143 to $134 while maintaining an Overweight rating, citing a vetted and executable 15-gigawatt data center pipeline. The utility signed 2.7 gigawatts of energy service agreements with data center customers in the first quarter, bringing total executed agreements to approximately 7.6 gigawatts, and is targeting 6 to 7 gigawatts of signed contracts this year. Duke Energy reaffirmed its 2026 earnings guidance range of $6.55 to $6.80 per share and its long-term target of 5% to 7% earnings per share growth through 2030.
Duke Energy shares rise 1.24% while broader market slips
Duke Energy closed at $125.05, a 1.24% gain that contrasted with the S&P 500's 1.44% decline. The electric utility's upcoming earnings report is expected to show earnings per share of $1.33, a 6.4% increase from the same quarter last year, on projected net sales of $7.7 billion. For the full year, analysts anticipate earnings of $6.71 per share and revenue of $33.66 billion, representing year-over-year growth of 6.34% and 4.43%, respectively. Duke Energy currently carries a Zacks Rank of 2, or Buy, and trades at a forward price-to-earnings ratio of 18.42, a slight premium to its industry average of 18.11.
Retirees Quietly Load Up on Verizon, Home Depot, and Duke Energy in June
Income-focused retirees are quietly accumulating shares of Verizon, Home Depot, and Duke Energy in June, drawn by multi-decade dividend track records and defensive business models. Verizon offers the highest yield at roughly 6% with a quarterly payout of $0.7075 per share, shares up 19% year to date to around $46.71, and management raised full-year adjusted EPS guidance to $4.95–$4.99 after Q1 adjusted EPS of $1.28 on $34.44 billion in revenue. Home Depot has paid 156 consecutive quarterly dividends, most recently $2.33 per share, with an annualized rate of $9.32 and a yield of roughly 2% at $336.59, while guiding for 3% to 5% total sales growth in FY2026. Duke Energy, with a beta of 0.379, declared a quarterly dividend of $1.065 per share yielding roughly 3% at $125.80, beat Q1 adjusted EPS estimates for the fourth straight quarter at $1.93 versus a $1.80 consensus, and backs a $103 billion five-year capital plan targeting 5% to 7% EPS growth through 2030.
Duke Energy Stock Screens as Overvalued on Dividend Model but Undervalued on Earnings
Duke Energy's stock closed at US$123.86, with a year-to-date return of 5.5% and a one-year return of 11.9%. A Dividend Discount Model analysis using a current dividend of US$4.70 per share, a return on equity of 9.08%, and a payout ratio of 74.72% yields an estimated intrinsic value of US$97.58 per share, suggesting the stock trades at a 26.9% premium and is overvalued on this measure. In contrast, Duke Energy's price-to-earnings ratio of 19.08 times sits below its industry average of 21.43 times, its peer average of 22.75 times, and Simply Wall St's proprietary Fair Ratio of 23.67 times, indicating the stock is undervalued on an earnings basis. The mixed signals come as investors weigh the stability of regulated utility income against interest rate expectations.
Duke Energy Proposes Big Tech Help Fund New Nuclear Plants
Duke Energy is exploring ways for large technology companies to help fund the construction of new nuclear power plants. The utility, which operates mainly in the U.S. southeast, is proposing that hyperscalers contribute capital to build new nuclear capacity, reducing the financial risk that utilities face from cost overruns and delays. If major tech firms agree, small modular reactor developers could benefit, with Oklo particularly well positioned due to its existing ties with Meta Platforms. Oklo remains a pre-revenue start-up with a $10 billion market cap, but a customer-financed model could provide a significant catalyst for its stock.
Duke Energy Stock Could Be 10.6% Undervalued After DOE Grant News
Duke Energy stock is back in focus after the U.S. Department of Energy selected the company for up to $61.8 million in new grants tied to coal plant reliability projects. Despite the grant headlines, the stock's short-term share price return has been fairly muted, though it has a positive year-to-date return of 5.47% and a one-year total shareholder return of 11.88%. The most widely followed narrative pegs Duke Energy's fair value at about $138.61 per share against its last close of $123.86, suggesting the stock is 10.6% undervalued, driven by expectations of robust multi-year load and volume growth from major economic development wins like Amazon Web Services' $10 billion data center in North Carolina. However, a Simply Wall St discounted cash flow model points to a lower fair value of $97.58 per share, indicating the stock may be overvalued based on cash flow estimates. Key challenges include potential regulatory pushback on data center and coal projects, as well as higher capital needs that could strain financing costs.
Three Utility Stocks Can Generate $2,700 in Annual Passive Income on a $90,000 Investment
A combined $90,000 investment split equally among Duke Energy, American Electric Power, and NextEra Energy can produce roughly $2,700 in annual passive income, according to an analysis by 24/7 Wall St. Duke Energy yields 3.39% and contributes $1,017 annually on a $30,000 stake, while American Electric Power yields 2.91% for $873 and NextEra Energy yields 2.70% for $810. All three are regulated utilities benefiting from surging data center demand, which is expanding rate bases and supporting annual dividend growth. Duke Energy has raised its quarterly dividend to $1.065, American Electric Power to $0.95, and NextEra Energy guides for continued double-digit dividend growth through 2026.