Duke Energy closed at $113.23 on Sept. 24, within cents of its lowest stock price in a year, as the 30-year Treasury yield closed at 5.47%, its highest since 2004. The article says rising yields make its 3.8% dividend less competitive and raise borrowing costs.
The 10-year Treasury yield also closed at 5.18%, a level last seen in 2007. The article says the 30-year bond now offers a higher rate than Duke's 3.8% dividend, while higher refinancing rates add to the cost of utilities' power-line and generating-plant construction.
Duke's regulated business has not changed, the article says. The company has pointed to rising electricity demand across its Southeast and Midwest service areas, helped by data centers. The shares trade at about 16 times next year's expected earnings, and the article cites an average analyst price target near $137.
