Why Duke Energy Stock Deserves a Spot in Your Portfolio Right Now

Duke Energy DUK continues to invest consistently in infrastructure and expansion projects to enhance service reliability for its customers. The company is also progressively increasing its renewable generation portfolio. Given its growth opportunities, DUK makes for a solid investment option in the Zacks Utility Electric Power industry.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.DUK’s Growth Outlook & Surprise HistoryThe Zacks Consensus Estimate for DUK’s 2025 earnings per share (EPS) is pegged at $6.32, which implies a year-over-year rise of 7.1%.The Zacks Consensus Estimate for DUK’s 2025 revenues stands at $31.76 billion, which indicates growth of 4.6% from the 2024 reported figure.DUK’s long-term (three to five years) earnings growth rate is 6.6%. It delivered an average earnings surprise of 3.12% in the last four quarters.DUK’s Return to ShareholdersDuke Energy has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is $1.065 per share, resulting in an annualized dividend of $4.26. DUK’s current dividend yield is 3.39%, better than the Zacks S&P 500 Composite's average of 1.5%.Duke Energy’s Capital Deployment PlanDUK is actively focused on scaling up its operations, adopting advanced technologies across its facilities, and strengthening its renewable generation portfolio through substantial investments in infrastructure and expansion projects. To meet the growing customer demand, the company plans to invest $190-$200 billion over the next decade, with a significant portion dedicated to supporting its clean energy transition. The company currently intends to spend $87 billion during the 2025-2029 period.DUK’s Renewable Expansion InitiativesAs of July 2025, Duke Energy operated 1,500 megawatts (MW) of solar capacity in Florida. Beginning in 2027, the company plans to bring an additional 1,500 MW of solar capacity online each year in the Carolinas and 900 MW annually in Florida. In the Carolinas, Duke Energy also aims to add 6,700 MW of solar and 2,700 MW of battery energy storage by 2031.The company plans to introduce 1,200 MW of onshore wind in service by 2033, followed by 800-1,100 MW of offshore wind by 2034 and 2,200-2,400 MW by 2035. These ambitious renewable capacity expansion initiatives are expected to further strengthen Duke Energy’s presence in the rapidly growing renewable energy market.DUK’s SolvencyDuke Energy’s times interest earned ratio (TIE) at the end of the second quarter of 2025 was 2.6. The TIE ratio is an important indicator of a company’s financial stability, measuring its capacity to meet long-term debt obligations. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.DUK Stock Price PerformanceIn the past month, Duke Energy shares have risen 4.3% compared with the industry’s growth of 2.9%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Dominion Energy, Inc. D, Exelon Corporation EXC and IDACORP Inc. IDA, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.D’s long-term earnings growth rate is 13.6%. The Zacks Consensus Estimate for its 2025 EPS stands at $3.39, which calls for a year-over-year jump of 22.4%.EXC’s long-term earnings growth rate is 6.3%. The consensus estimate for its 2025 EPS is pegged at $2.69, which indicates a year-over-year rally of 7.6%.IDA’s long-term earnings growth rate is 8%. The Zacks Consensus Estimate for its 2025 EPS is pegged at $5.84, which implies a year-over-year rise of 6.2%.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report Duke Energy Corporation (DUK): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report IDACORP, Inc. (IDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks