If you're a dividend investor, one stock you'll want to keep a close eye on right now is Duke Energy (NYSE:DUK). The utility company's shares have been crashing of late and have nosedived around 20% in just the past month. Prior to that, the stock was in positive territory for the year – a notable accomplishment in what's been a brutal market.
The stock is now trading near its 52-week low of $83.76 and with the drop in price, its yield is up around 4.6%. That's more than double the S&P 500 average of 1.8%. To collect $1,000 in dividend payments over the course of the year from Duke Energy, at its current yield, you would need to invest approximately $21,740 into the stock.
Over the trailing 12 months, Duke has generated $3.8 billion in profit, on revenue of $27 billion, for a profit margin of 14%. Based on its profits, the company's dividend is at a payout ratio of 80%, which suggests that it is safe for the foreseeable future.
In addition to collecting a great dividend, investors can take advantage of the stock being beaten down right now, trading at 18 times its profits. Most analysts have set price targets for the stock of more than $100, suggesting an upside of 15% or better from where it trades at today.
This low volatility stock makes for an underrated buy right now, one that you can buy and hold for years. Duke's strong financials and attractive dividend make this an attractive stock to hang on to for the long haul.
