This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buy American: 5 Stocks to Escape the Eurozone Crisis

Stocks in this article: DUK LTD CVC DLTR ESRX

Duke Energy

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

If you want to get defensive, you can't do much better than Duke Energy (DUK), one of the biggest regulated electric and gas utilities in the country. Duke operates in six states, providing gas and electric service to 7.1 million customers.

To be fair, Duke does have some overseas exposure: It owns hydroelectric generation plants in Latin America and a methanol joint venture in Saudi Arabia. But currency risks are mitigated by the fact that the cash those international businesses generate is tied to commodity prices, and more important, the costs of running them are sourced in those home currencies, not the dollar.

>>5 Rocket Stocks You Should Buy This Week

So while international assets have generated strong cash for Duke in the past few years, the firm's bread and butter remains its regulated utility business. Like most regulated utilities, Duke earns stable, consistent earnings from its regulated businesses, resulting in a hefty dividend payout that currently weighs in at 4.69%. And better still, even though Duke operates in a capital-intense business, cash coverage is more than sufficient to support a bigger dividend in 2012.

Duke has had a history of winning rate hikes from its regulators. If the firm can continue to keep those increases in the future, profits should continue to expand, especially as Duke reaps the cost savings benefits of its merger with Progress Energy.

I also featured Duke earlier this month in " 7 Dividend Stocks That Want to Pay You More Cash."

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs