Duke Energy: Charged up in the Carolinas

07/29/2019 5:00 am EST

Focus: UTILITIES

Stephen Mauzy

Income-Investing Specialist, Wyatt Investment Research

More companies are paying dividends than ever. What’s more, these dividend payers are paying more than ever.  Dividends hit a record high in 2018, explains Steve Mauzy, dividend expert and editor of High Yield Wealth.

Global corporations paid $1.37 trillion in dividends last year, a 7.8% increase over dividends paid in 2017, according to data compiled by Janus Henderson. 

As we all know, records are made to be broken. 2019 should end with even more dividends paid.  Janus Henderson expects global dividends to rise another 4.2% year over year. By the time we roll into 2020, global corporations will likely have paid over $1.43 trillion in dividends to their shareholders. 

No surprise here. North American corporations, led by those with headquarters in the United States, are the most prodigious dividend payers. The corporations located on our continent paid $509.9 billion in total dividends in 2018.  They’re sure to pay more this year. 

More dividends are on the way, if you’re a Duke Energy (DUK) investor. The Carolina-based utility announced an improved payout next go-around.

Duke Energy will pay a $0.945-per-share quarterly dividend over the next 12 months. This is Duke’s 13th consecutive annual dividend increase. 

If you want Duke’s improved dividend, you’ll need to buy (or already own) its shares no later than the market close on Aug. 14. Own the shares heading into Aug. 15, the ex-dividend date, and you’ll find the dividend credited to your account on Sept. 15. 

Duke’s dividend increase lifts its current yield to 4.3%. It raises our cost-basis yield — based on our March 2018 entry price of $76.50 — to 4.9%. 

As we are quick to note, as the dividend goes, so goes the share price. Duke shares have risen with its dividend. The shares are up 16% since our initial recommendation. 

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