10 Best Energy Dividend Stocks To Buy Right Now

7. Duke Energy Corporation (NYSE:DUK)

Number of Hedge Fund Holders: 46

Duke Energy Corporation (NYSE:DUK) is an American electric power and natural gas holding company that is primarily involved in the generation, transmission, distribution, and sale of electricity. The company’s utility portfolio operates under government regulation, which determines its rates and guarantees a stable revenue stream. This consistency provides dependable cash flow to support both dividend distributions and business expansion. The company is making strategic investments to enhance its operations while also working to reduce carbon emissions. Analysts expect that these initiatives will drive annual earnings per share growth of 5% to 7% through 2028, a solid rate for a leading utility. This positive growth trajectory strengthens Duke Energy’s ability to maintain and gradually raise its dividend over time.

Duke Energy Corporation (NYSE:DUK) is making significant investments in strengthening and modernizing its power grid. In 2023 alone, the company allocated over $4 billion toward grid improvements, including selective undergrounding of power lines, upgrading utility poles, and implementing self-healing technology. These upgrades have enhanced grid reliability, preventing nearly 550,000 customer outages and reducing downtime by 7 million hours during recent hurricanes. Moving forward, the company intends to maintain its focus on infrastructure upgrades, with grid-related projects making up half of its planned $73 billion capital expenditures over the next five years.

Duke Energy Corporation (NYSE:DUK) is a reliable stock for income investors because of its stable cash position. In its most recent quarter, the company had $376 million available in cash and cash equivalents. In the first nine months of FY24, it generated $8.95 billion in operating cash flow, showing an increase from $7.31 billion in the same period last year. The company has never missed a dividend in 98 years and also maintains a 13-year streak of consistent dividend growth, which makes DUK one of the best dividend stocks on our list. Its quarterly dividend comes in at $1.045 per share and has a dividend yield of 3.64%, as of February 8.

The hedge fund sentiment around Duke Energy Corporation (NYSE:DUK) remained positive in Q3 2024 as 46 funds tracked by Insider Monkey held stakes in the company, up from 37 in the previous quarter. The consolidated value of these stakes is over $1.66 billion. Among these hedge funds, GQG Partners was the company’s leading stakeholder in Q3.