June 03, 2025 a 07:31 am
DUK: Dividend Analysis - Duke Energy Corporation
Duke Energy Corporation, a major player in the utilities sector, presents a solid dividend profile with a dividend yield of 3.60% and a continuous dividend history spanning 43 years. Despite a challenging operating environment, the company's resilience is evident in its commitment to shareholder returns. Investors looking for consistent income may find the company's long-standing dividend payments attractive.
📊 Overview
Duke Energy operates predominantly in the utilities sector, benefiting from stable demand patterns. With a current dividend yield of 3.60% and a substantial dividend history of 43 years, the company displays dependable performance in maintaining shareholder value through consistent dividend disbursements.
| Parameter | Value |
|---|---|
| Sector | Utilities |
| Dividend Yield | 3.60% |
| Current Dividend per Share | 4.16 USD |
| Dividend History | 43 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The consistency of Duke Energy's dividend history underscores its reliability and commitment to shareholders. Maintaining a prolonged record without cuts or suspensions is crucial for long-term investor confidence.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.09 |
| 2024 | 4.14 |
| 2023 | 4.06 |
| 2022 | 3.98 |
| 2021 | 3.90 |
📈 Dividend Growth
Steady dividend growth is a vital indicator of a company’s financial health and management’s commitment to increasing shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 2.02% |
| 5 years | 2.03% |
The average dividend growth is 2.03% over 5 years. This shows moderate but steady dividend growth, reassuring for investors seeking increasing income streams.
✅ Payout Ratio
The payout ratio helps investors understand how much of the company’s earnings are being returned to shareholders as dividends. It measures sustainability and room for growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 67.87% |
| Free cash flow-based | -1767.69% |
While the EPS payout ratio of 67.87% is within a sustainable range, the negative free cash flow payout ratio indicates cash flow challenges that could impact the firm’s dividend sustainability.
📊 Cashflow & Capital Efficiency
Efficient cash flow management and capital allocation are crucial for maintaining business operations and growth investments, subsequently affecting dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 0.06% | -3.64% | -6.86% |
| Earnings Yield | 5.44% | 3.80% | 3.22% |
| CAPEX to Operating Cash Flow | 99.41% | 127.60% | 191.78% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 0.39% | -27.60% | -91.78% |
The figures indicate a potential strain in cash flow management, with negative returns on free cash flow reflecting the need for improving cash generation relative to expenses.
📊 Balance Sheet & Leverage Analysis
An in-depth look into leverage ratios reveals how well Duke Energy is positioned to meet its long-term obligations without hampering operations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.70 | 1.64 | 1.52 |
| Debt-to-Assets | 0.46 | 0.45 | 0.42 |
| Debt-to-Capital | 0.63 | 0.62 | 0.60 |
| Net Debt to EBITDA | 5.91 | 6.04 | 6.01 |
| Current Ratio | 0.67 | 0.74 | 0.70 |
| Quick Ratio | 0.44 | 0.49 | 0.51 |
| Financial Leverage | 3.72 | 3.60 | 3.61 |
Duke Energy’s financial leverage is relatively high, pointing towards significant reliance on debt, necessitating careful observation on debt management and interest coverage.
📊 Fundamental Strength & Profitability
Profitability metrics directly indicate business efficiency and effectiveness in generating investor returns, imperative for sustaining dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.03% | 5.78% | 5.17% |
| Return on Assets | 2.43% | 1.61% | 1.43% |
| Margins: Net | 14.90% | 9.78% | 8.86% |
| Margins: EBIT | 28.26% | 26.78% | 22.65% |
| Margins: EBITDA | 47.34% | 45.73% | 43.11% |
| Margins: Gross | 98.13% | 47.34% | 45.11% |
| R&D to Revenue | 0% | 0% | 0% |
The company's ROE and asset returns reflect moderate profitability levels, suggesting possible avenues for efficiency and margin improvements.
📉 Price Development
⚠️ Dividend Scoring System
| Criteria | Score | Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 28 / 40
📈 Rating
Duke Energy Corporation demonstrates a solid track record with consistent dividends and commendable stability. While areas such as cashflow management present challenges, the company's dividend history and yield make it an attractive option for income-focused investors. The profile suggests a cautious yet positive outlook for those prioritizing income over capital appreciation.