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4-Star Stocks Poised to Pop: Duke Energy

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electricity giant Duke Energy (NYSE: DUK  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Duke's business and see what CAPS investors are saying about the stock right now.

Duke facts

Headquarters (Founded)

Charlotte, N.C. (1916)

Market Cap

$25.0 billion

Industry

Electric utilities

Trailing-12-Month Revenue

$14.29 billion

Management

Chairman/CEO James Rogers Jr.
CFO Lynn Good

Return on Equity (Average, Past 3 Years)

5.9%

Cash/Debt

$1.4 billion / $19 billion

Dividend Yield

5.3%

Competitors

Southern Company (NYSE: SO  )
American Electric Power (NYSE: AEP  )
Constellation Energy (NYSE: CEG  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 1,880 members who have rated Duke believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Chemdawg, who is ranked in the top 5% of our community, and Blackc0w.

Earlier this month, Chemdawg tapped Duke as particularly safe selection: "[S]olid and unspectacular way to beat the market until the economy bounces off the bottom."

In fact, Duke currently sports a juicy dividend yield of 5.3%. That's higher than that of other utility plays like Southern Company (4.6%), AEP (4.9%), and Constellation Energy (2.6%).

CAPS member Blackc0w lists four reasons to dig into Duke:

1. High Dividend. Increased for [5 straight] years.
2. High Profit Margin and Return on Assets relative to industry shows good job at cutting costs, which in today's economy is the way to increase profits.
3. Global Warming will cause more extreme temperatures, which means more energy will be used.
4. Low P/E and Price to Book

What do you think about Duke, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Duke? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Southern Company. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:00 PM
DUK $21.96 Up +0.16 +0.73%
Duke Energy Corp CAPS Rating: ****
SO $45.69 Up +0.09 +0.20%
Southern Company CAPS Rating: *****
CEG $37.23 Down +0.00 +0.00%
Constellation Ener… CAPS Rating: *****
AEP $38.23 Up +0.25 +0.66%
American Electric… CAPS Rating: ****

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