DUK vs NEE: Dividend Yield, Growth & Safety Comparison
Duke Energy CORP (DUK) and Nextera Energy Inc (NEE) are both in the Utilities sector, making them natural rivals for dividend investors. DUK edges ahead on yield at 3.45% versus NEE's 2.49%. Both stocks show similar dividend growth rates, each around 9.5% over the past five years. Both stocks carry a "Moderate" dividend safety rating. DUK is a Dividend Contender while NEE is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | DUK | NEE |
|---|
| Dividend Yield | 3.45% | 2.49% |
| Annual Dividend | $4.26 | $2.27 |
| 5-Year CAGR | 9.5% | 10.2% |
| Payout Ratio | 67% | 69% |
| Consecutive Years | 19 | 30 |
| Price | $127.66 | $93.81 |
Yield Comparison
Duke Energy CORP (DUK) currently yields 3.45%, which is solid for the broader market. That's 0.96% more than Nextera Energy Inc (NEE), which yields 2.49%. In dollar terms, DUK pays $4.26/share annually versus NEE's $2.27/share.
Dividend Growth
Over the past five years, NEE has grown its dividend at a 10.2% CAGR compared to DUK's 9.5%. DUK: Dividend growth is slowing — the 3-year CAGR of 1.9% trails the 5-year rate of 9.5% and the 10-year rate of 5.8%. NEE: Dividend growth has been steady, with a 3-year CAGR of 10.1% and a 5-year CAGR of 10.2% (10-year: 11.2%).
Dividend Safety
DUK's dividend safety is rated "Moderate." The payout ratio of 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x. NEE's dividend safety is rated "Moderate." The payout ratio of 69% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. Both have similar payout ratios — DUK at 67% and NEE at 69%.
Income Comparison
A $10,000 investment in DUK generates approximately $345/year in dividend income, compared to $249/year from NEE — a difference of $96/year. At $100,000, that gap widens to $960/year.
Verdict
- Best for income: DUK
- Best for growth: NEE
Frequently Asked Questions
Which has a higher dividend yield, DUK or NEE?
Duke Energy CORP (DUK) has a higher dividend yield of 3.45% compared to Nextera Energy Inc (NEE) at 2.49%.
Is DUK or NEE a better dividend growth stock?
Nextera Energy Inc has the stronger dividend growth with a 5-year CAGR of 10.2%, compared to Duke Energy CORP's 9.5%.
Which is safer for dividend income, DUK or NEE?
Duke Energy CORP's dividend safety is rated "Moderate" while Nextera Energy Inc is rated "Moderate." The payout ratio of 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x. The payout ratio of 69% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
How much income does $10,000 in DUK vs NEE generate?
A $10,000 investment in DUK generates approximately $345/year in dividends, while the same amount in NEE generates about $249/year.
Is DUK or NEE a Dividend Aristocrat?
Duke Energy CORP is a Dividend Contender (19 years) and Nextera Energy Inc is a Dividend Aristocrat (30 years).
Which has a lower payout ratio, DUK or NEE?
Duke Energy CORP has a lower payout ratio of 67% compared to Nextera Energy Inc's 69%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DUK vs NEE: which is better for retirement income?
It depends on your priorities. DUK for current income, NEE for dividend growth. Many retirement investors hold both for diversification.
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