Thursday, January 4, 2018

Recent Buy - Duke Energy Corporation (DUK)

Tuesday January 2, I bought 20 shares of Duke Energy Corporation at $ 83.21 per share plus commission.

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; uses coal, hydroelectric, natural gas, oil, renewable generation, and nuclear fuel to generate electricity; and engages in the wholesale of electricity to municipalities, electric cooperative utilities, and other load-serving entities. This segment serves approximately 7.5 million retail electric customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 95,000 square miles; and owns approximately 49,300 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in various pipeline transmission and natural gas storage facilities. It has approximately 1.5 million customers, including 1 million customers located in North Carolina, South Carolina, and Tennessee, and as well as 529,000 customers located in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, builds, develops, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and commercial and industrial customers. This segment has 21 wind farms and 63 commercial solar farms with a capacity of 2,900 MW across 14 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. Duke Energy Corporation was incorporated in 2005 and is headquartered in Charlotte, North Carolina.

DUK is a Dividend Contenders with a 13 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 3.9, 3.5, 2.9 and 3.1. (DividendChampions.xls) Duke Energy Corporation now pays dividends of $ 0.89 per share normally in March, June, September and December.

If you are interested, you can read analysis of Duke Energy Corporation by DivGuya at Dividend Monk here and by Dividend Growth Stocks here.

Details of my purchase:

Some ratings for DUK:

    Yahoo:  Mean Recommendation 2.9, 1y Target Est $ 88.32
    Reuters: Mean Rating 2.94
    Morningstar:  (***) 

At today's exchange rate, this purchase 20 shares of DUK will increase € 44.11 ($ 53.04) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 11,470.00. With purchase price $ 83.21 plus commission ($ 3.50) my starting yield on cost is 4.27%. After this acquisition, DUK's weight of my portfolio is about 0.34% and its share of future annual dividend income is approximately 0.38%. My purpose is to add more DUK to my portfolio if the price remains at these levels.

Click here to see my portfolio.

Full Disclosure: Long DUK 

Thanks for stopping by!

1 comment:

  1. Cannot say no to an utility. Nice yield and definitely helps us progress towards FI.