Duke Energy Lifts Quarterly Dividend

Duke Energy (DUK: 21.46 +0.37%) announced today that the company will increase their quarterly dividend by 2% to $.245 per share.

 

Although the dividend increase is marginal, it will lift Duke Energy’s yield to 6.1% based on today’s closing price.

 

While dividend investors certainly like the high yield and dividend history (this marks the 84th consecutive year that DUK has paid a quarterly cash dividend), DUK has been a poor performer of late. In 2009, Duke Energy stock price gained only 15% while the S&P 500 index jumped nearly 24%. Shares of Duke Energy have fallen 5% since the beginning of the year and the utility stock is on track to underperform the S&P 500 index again this year.

 

“The dividend increase announced today is consistent with our previously stated objective to continue growing the dividend but at a slower rate than the long-term growth in our adjusted-diluted earnings per share,” said James E. Rogers, chairman, president and CEO. “During this period of significant reinvestment in the business, our board has recognized the importance of delivering returns to our investors while maintaining the strength of our balance sheet.”

 

The dividend will be payable on September 16, 2010, to shareholders of record at the close of business on August 13, 2010.

 

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