Duke Energy: More Dividends In The Pipeline

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About: Duke Energy Corporation (DUK)
by: Benjamin Black
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Benjamin Black
Value, long-term horizon, dividend investing, growth at reasonable price
Summary

At its current valuation, Duke seems fairly priced compared with recent years, but a relatively high dividend makes the stock potentially attractive.

With a couple of sizable projects (pipelines in western Ohio and the Carolinas), Duke faces large continued investment costs, which will likely constrain earnings growth in the immediate future.

Some funky accounting tricks have helped goose revenues in at least one state, but is this truly a sustainable tactic?

Recent quarterly results were mixed, but a slight earnings surprise at least showed management appears to be on track, despite certain project cost overruns.

Introduction

Duke Energy Corp. (NYSE:DUK) is one of the largest regulated utilities in the U.S. and has areas of operation "spanning the Midwest, Florida, and the Carolinas." South Carolina has become