Duke Energy And XLU: Still Worst Time To Buy Since 2008

Summary

  • This is an updated coverage of Duke Energy following an article published about 6 months ago.
  • The updates are motivated by several changes in the macroeconomic parameters and also the utility sector represented by the Utilities Select Sector SPDR ETF (XLU).
  • The hikes in risk-free interest rates since then made both the sector and Duke Energy’s risk premium at the highest level since 2008.
  • The utility sector’s recent dividend payout of $0.501 per share represents only a 0.4% rise YOY, signaling more profitability pressure ahead.
  • This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »

market stock graph and information with city light and electricity and energy facility banner industry and business background

MadamLead

Thesis

This is an updated coverage of Duke Energy Corporation (NYSE:DUK) following an article I published back in May 2022. In that article, I cautioned readers about the expensive valuation of the utility sector. At that time, it was the

As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.

We have helped our members not only to beat S&P 500 but also avoid heavy drawdowns despite the extreme volatilities in BOTH the equity AND bond market.

Join for a 100% Risk-Free trial and see if our proven method can help you too.

This article was written by

18K Followers

Envision Research, aka Lucas Ma, has over 20+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About DUK Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on DUK

Related Stocks

SymbolLast Price% Chg
DUK
--
XLU
--