We recently published a list of the 30 Growing Dividend Stocks with Low PE Ratios. In this article, we are going to take a look at where Duke Energy Corporation (NYSE:DUK) stands against other growing dividend stocks.
Value stocks are enjoying a rare period of strength amid this year’s broader market downturn. With earnings season approaching, it remains to be seen whether their recent edge over high-growth stocks will hold.
The S&P Value Index—which includes sectors like banking, consumer staples, and healthcare, featuring companies that trade at relatively low valuations—has fallen around 9% this year. That’s a smaller drop compared to the more than 15% decline seen in the growth-focused counterpart.
Concerns over steep valuations in the tech sector, coupled with a wave of risk aversion triggered by tariffs, have pushed investors to shift from growth to value. While similar shifts haven’t lasted long in the past, some investors believe that this time could be different, as expectations for value-oriented firms are modest enough that they may exceed them when earnings reports begin next month. Dan Morgan, senior portfolio manager at Synovus Trust, made the following comment about value investing:
“The bar has been set pretty low for value stocks compared to the uncertainty surrounding growth names and their ability to deliver on earnings estimates. If value can at least match or slightly beat expectations, the runway is clear for them.”
According to data from Bloomberg Intelligence, analysts are forecasting a 12% decline in first-quarter earnings for value companies compared to the same period last year, while growth companies are expected to post a 20% increase.
Supporters of value stocks believe that these lower expectations are already factored into their relatively modest valuations. On the other hand, optimism surrounding growth stocks—particularly in the tech sector—has soared in recent years, largely driven by enthusiasm over advancements in artificial intelligence.
Historically, value stocks have lagged behind. Over the past 20 years, the S&P 500 Value Index has only outperformed its growth counterpart five times on an annual basis. During that period, the value index climbed 202%, while the growth index surged by 600%. Michael O’Rourke, chief market strategist at JonesTrading Institutional Services, made the following statement:
“Growth is about 40% more expensive; this outperformance of value was very long overdue. Due to the incredible strength of the Magnificent Seven, too many investors crowded into growth thinking it won’t correct.”
Investors often turn to dividend stocks when looking at companies with lower valuations. Dan Lefkovitz, a strategist at Morningstar Indexes, pointed out that dividend-growth stocks—those known for consistently raising their payouts—have underperformed the broader market in 2024. He attributed this to a market that has largely been driven by a handful of fast-growing tech names. However, he also remarked that while dividend-paying stocks may trail during such growth-led rallies, they tend to hold up better during market downturns, as seen in 2022 and 2018.
Companies that consistently raise their dividends are often both profitable and financially stable—traits that become especially important during times of economic downturn.
Aerial view of a power plant near a lake lit up at night, showing off the company’s expansive electricity generation capabilities.
Our Methodology
For this list, we focused on dividend-paying companies that have consistently paid dividends over the years and have also demonstrated a track record of increasing their payouts. From that group, we considered stocks with forward P/E ratios below 25, as of April 22. The stocks are ranked in ascending order of their P/E ratios.
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Duke Energy Corporation (NYSE:DUK)
Forward P/E Ratio as of April 22: 19.08
Duke Energy Corporation (NYSE:DUK) is a North Carolina-based electric power and natural gas holding company that is primarily involved in the generation, transmission, distribution, and sale of electricity. Since the start of 2025, the stock has surged by over 13%, outperforming the broader market.
In the fourth quarter of 2024, Duke Energy Corporation (NYSE:DUK) posted an adjusted earnings per share of $1.66, edging past market expectations by a cent. However, its revenue came in at $7.36 billion, missing forecasts by roughly $294 million. The company faced significant financial setbacks due to Hurricanes Debby, Milton, and Helene, with restoration costs estimated between $2.4 billion and $2.6 billion. Despite these challenges, Duke’s electric and gas divisions saw a 5% year-over-year increase in income, reaching approximately $1.4 billion for the quarter.
Duke Energy Corporation (NYSE:DUK) is a solid dividend payer, as the company has distributed dividends regularly for 99 consecutive years. Moreover, it has raised its payouts for 13 consecutive years, which makes DUK one of the best growing dividend stocks. The company offers a quarterly dividend of $1.045 per share and has a dividend yield of 3.4%, as of April 22.
Overall, DUK ranks 24th on our list of the best growing dividend stocks with low P/E ratios. While we acknowledge the potential of DUK as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than DUK but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.