Duke Energy Corp (DUK)

The coal burning utilities have dodged the bullet on carbon emissions, temporarily. It will be interesting to see if mercury ever plays out. The biggest issue of concern near term is the classification of coal ash as hazardous by the EPA. Duke has many acres of ash ponds in the midwest. It's time to stop burning solid fuels.

Diverse portfolio no matter what energy succeeds this company will.

Income

While possessing solid fundamentals and an attractive dividend yield at current price levels (~6%), it's Duke's efforts to position themselves to take advantage of evolving energy policy (aggressive investments in alternative supplies, 'green' initiatives, etc) that makes them one of the more attractive utilities in the long term.

Demand for energy will only keep rising and they are getting into renewable energy as well, which will be a large industry in the future.

It's a Recommended Core Stock by the Motley Fool Stock Adviser.

Great utility stock for the long term.

Factoring in dividends, Duke will continue to perform well.

Energy costs don't go down, anytime soon, not now, not ever. Buy your weight and wait.

I am buy and hold investor and I look for stocks with good dividends.

From MIT Technology Review;

"Generates most of it's electricity from coal, natural gas, and oil. In 2007 company recieved permission from Indiana regulators to build the worlds first large scale integrated gasification combined cycle plant, which converts coal into a cleaner burning gas. Also operates a large fleet of nuclear reactors in the carolinas and has submitted an application for a license to build a new two reactor facility in South Carolina."

p/e fairly good

plenty of electric power available.

no real competition

good variety for consumption

good prospect

good prospectus

very good balance sheet #'s

Duke is still suffering from some very bad decissions made during the Enron years and is digging its way from under a huge debt load, $15.5B. I normally shy away from high debt companies, but DUK's current management team seems to have a plan and making it work. Muck of their business is regulated power, and they will make a profit to that. they also are operating nuclear plants that are written off from deprication and producing power for 1/5 the cost of any other fuel. Their new shift to sustainable power production is going in the right direction, although it may be a while before that is profitable unless government regulations force all power companies to follow suit. The 6.3% dividend makes it easier to wait for good things in the future.

smart grid

They will likely be building ALWR's in the coming years. Simplified designs need fewer workers and produce more energy safely. Dependence on electricity and carbonless electricity alternatives will drive more nuclear plant construction.

Considering Book value, earnings, and market cap...this should beat the market in 5 years.

Utility sector is a good choice for value and for defense. This company has low debt, good margin, and a good dividend.

See http://www.fool.com/investing/dividends-income/2009/05/18/the-next-2-dividend-blowups.aspx?source=itxsitmot0000002

Sector Play - Energy will reward those who wait