12 Best Electric Utility Stocks to Buy Now

4. Duke Energy Corporation (NYSE:DUK)

Number of Hedge Fund Investors: 62

Duke Energy Corporation (NYSE:DUK) is listed among our Best Utility Stocks. It is one of the country’s largest power company stocks. It has two business divisions. The first one is Electric utilities and infrastructure, which manages regulated utilities for 8.4 million retail electric consumers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky. The second segment is Gas utilities and infrastructure, which distributes natural gas to 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky.

Duke Energy Corporation (NYSE:DUK)’s utility portfolio, which is governed by government organizations that determine its rates, produces consistent revenue. As a result, it has steady cash flow to grow its utility companies and pay dividends.

The company outperforms numerous electricity stocks due to a few criteria. Its stable energy businesses that provide consistent revenue are complemented by a solid financial profile, which includes an investment-grade credit rating. Furthermore, it has a conservative dividend payout ratio, which allows it to make investments in cleaner energy. Duke Energy Corporation (NYSE:DUK) is making significant investments to improve its business practices and reduce its carbon footprint.

BMO Capital maintained its Outperform rating on Duke Energy Corporation (NYSE:DUK) shares and increased its price objective from $123 to $128. The firm reiterated its optimistic outlook on shares during its meeting with the company’s management team. The analyst informs investors in a research note that BMO continues to see a defensive profile and low-touch regulatory calendar with a visible growth inflection driving multiple expansions with continued execution.