Morningstar Rating

Stock Research and Analysis

by Andrew Bischof, CFA

Bulls Say

Duke's regulated utilities provide a stable source of earnings. The company's large capital-expenditure plan should drive rate base and earnings growth for the next several years.
The company operates in constructive North Carolina and South Carolina regulatory jurisdictions, which account for more than half of the company's regulated revenue.
Duke's international businesses are highly contracted with strong cash generation and earnings diversity. Read more 

Bears Say

Management faces several challenges to integrating Progress Energy, mainly meeting promised fuel savings to Carolina customers and attaining merger synergies.
Because of Duke's aggressive investment plan, Duke's regulatory risk increases.
Rising interest rates could unearth more attractive income-producing alternatives for yield-seeking investors. Read more 

Management

We assign Duke Energy a Standard Stewardship Rating, as both management and the board have made strides in overcoming key concerns that led us to previously assign Duke a Poor Stewardship Rating in mid-2012. Improvements in corporate governance, mended   Read more 

Profile

Duke Energy is the largest U.S. utility, with regulated utilities in the Carolinas, Indiana, Florida, Ohio, and Kentucky that deliver electricity and gas to about 7.1 million   Read more 

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3 Yield Opportunities in the Utilities Sector 
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