Duke Energy Corporation (DUK): A Bull Case Theory

We came across a bullish thesis on Duke Energy Corporation on MaxDividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on DUK. Duke Energy Corporation's share was trading at $121.67 as of February 3rd. DUK’s trailing and forward P/E were 19.11 and 18.12  respectively according to Yahoo Finance.

Duke Energy (DUK) stands as America’s largest regulated electric utility, quietly powering economic growth across eight states from the Midwest to the Southeast while converting population inflows, industrial expansion, and electrification trends into stable, regulated returns. Serving 8.9 million electric customers across six states and 1.7 million gas customers in Ohio and Kentucky, Duke has evolved from early 20th-century hydro roots and coal dominance into a modern utility anchored by renewables, nuclear generation, and large-scale grid investments.

Its regulated model shields earnings from commodity volatility, allowing the company to consistently outpace peers in customer growth while maintaining predictable cash flows. Strategic actions, including the $6 billion sale of a Brookfield stake in Duke Energy Florida and plans to merge its Carolinas utilities, are designed to boost efficiency, fund long-term capital investment, and strengthen the balance sheet.

Dividend reliability remains a core pillar of the investment case. Duke pays a $4.26 annual dividend, yielding 3.53%, supported by a 66.98% payout ratio and 20 consecutive years of dividend increases. While growth has been measured, with a 10% compound increase over the past five years, the consistency reflects disciplined capital allocation and resilient regulated earnings. Recent operating momentum remains solid, with Q3 2025 revenues of $8.54 billion rising roughly 4.8% year over year and GAAP EPS of $1.81 beating expectations, driven by favorable rate cases and rider mechanisms.

Looking ahead, Duke is positioned to benefit from accelerating load growth as data centers and manufacturing projects drive 3–4% demand increases through the decade. With a $16 billion five-year capex plan, expanding customer base, and a proven dividend pedigree, Duke Energy offers a steady, income-focused investment profile with modest growth and limited downside, though regulatory execution and leverage levels remain key factors to monitor.

Previously, we covered a bullish thesis on Quanta Services, Inc. (PWR) by Bulls On Parade in May 2025, which highlighted the company’s exposure to AI-driven power infrastructure, grid modernization, and data center buildouts. PWR’s stock price has appreciated by approximately 67.11% since our coverage. Serhio MaxDividends shares a similar view but emphasizes regulated returns, dividend stability, and utility-driven load growth through Duke Energy (DUK).

Duke Energy Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held DUK at the end of the third quarter which was 57 in the previous quarter. While we acknowledge the risk and potential of DUK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DUK and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.