February 05, 2026 a 12:47 pm
DUK: Dividend Analysis - Duke Energy Corporation
Duke Energy Corporation has maintained a stable dividend track record with a 3.47% yield. With a 44-year history of consistent dividends and no recent cuts or suspensions, it stands as a testament to its reliability. The payout ratios indicate reasonable sustainability, though there is room for diversification in capital allocation strategies.
📊 Overview
Duke Energy Corporation operates within a critical sector, providing essential utilities services. Its financial health is supported by its substantial market capitalization and robust dividend policy.
| Sector | Dividend Yield | Current Dividend Per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Utilities | 3.47 % | 4.16 USD | 44 years | None |
🗣️ Dividend History
Duke Energy's dividend history reflects its commitment to returning value to its shareholders over the long term. This consistency is crucial for investors seeking reliable income streams.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.065 |
| 2025 | 4.220 |
| 2024 | 4.140 |
| 2023 | 4.060 |
| 2022 | 3.980 |
📈 Dividend Growth
The growth rate of dividends is a critical parameter for assessing the potential for income enhancement from dividend stocks.
| Time | Growth |
|---|---|
| 3 years | 1.97 % |
| 5 years | 2.01 % |
The average dividend growth is 2.01% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios reveal how much of a company's earnings and free cash flow are being returned to shareholders as dividends, an indicator of dividend sustainability.
| Key figure ratio |
|---|
| EPS-based 64.85 % |
| Free cash flow-based 36.12 % |
A 64.85% EPS payout indicates stable earnings distribution, while a 36.12% FCF payout suggests robust cash flow management.
Cashflow & Capital Efficiency
Strong cash flow and capital efficiency metrics are vital for sustainable growth and shareholder returns. Key financial indicators highlight operational efficiency.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 0.06 % | -3.64 % | -6.86 % |
| Earnings Yield | 5.42 % | 5.74 % | 3.22 % |
| CAPEX to Operating Cash Flow | 25.64 % | 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 liquidity constraints reflected in the FCF metrics warrant attention, though the earnings yield points to potential efficiency gains.
Balance Sheet & Leverage Analysis
An analysis of leverage and overall financial structure offers insights into a company’s long-term solvency and risk profile.
| Year | 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 | 5.61 | 5.78 | 6.03 |
| Current Ratio | 0.63 | 0.74 | 0.70 |
| Quick Ratio | 0.44 | 0.49 | 0.51 |
| Financial Leverage | 3.72 | 3.60 | 3.61 |
Stable leverage ratios suggest controlled debt usage, although improvements in current and quick ratios could benefit liquidity.
Fundamental Strength & Profitability
Profitability ratios and return measures provide a snapshot of a company’s ability to generate earnings and value for shareholders.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.99 % | 8.75 % | 5.17 % |
| Return on Assets | 2.42 % | 2.43 % | 1.43 % |
| Net Margin | 14.85 % | 14.78 % | 8.86 % |
| EBIT Margin | 28.26 % | 26.78 % | 22.65 % |
| EBITDA Margin | 49.40 % | 47.71 % | 42.96 % |
| Gross Margin | 50.06 % | 47.34 % | 45.11 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
Profitable margins and ROE demonstrate Duke Energy's operational efficiency, although R&D reinvestment opportunities are currently untapped.
Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Overall Score: 29/40
Rating
Duke Energy Corporation holds a commendable dividend profile characterized by reliability and consistent payouts. With a solid track record and reasonable growth metrics, it continues to be an attractive choice for income-focused investors, despite some liquidity constraints that the company may address moving forward.