Duke Energy has displayed solid financial performance over the years. Since 2010, Duke Energy’s net income has increased from $1.320 billion to $2.107 billion in TTM, an increase of 59.62%. Along with solid profitability, its cash flows are growing year over year. In the trailing twelve months, its operating cash flows went up to $5.4 billion. Due to massive spending on acquisitions and expansion projects, its free cash flows are negative at $425 million. Recently, the company announced Q1 earnings with consolidated revenue of $5.90 billion, up 62.5% over the past year quarter. I believe its dividends look safe as the company has strong top line growth with manageable debt levels.
DTE Energy (NYSE:DTE) Holding Company
DTE Energy is engaged in the business of electricity, natural gas, and storage services throughout Southeastern Michigan. DTE Energy has turned out to be a solid investment for dividend investors over the past two years. Recently, the company announced an increase in its quarterly dividends of 5.64%. At present, the DTE offers a quarterly dividend of $0.655 cents per share.
Are The Dividends Safe?
DTE is on the right track and working hard to become the best operated energy company in North America. DTE focuses on providing consumers with clean, safe, and reliable energy at a reasonable price. The company is diversifying its project portfolio to this end, and the portfolio now includes nuclear, coal, natural gas, and renewable energy projects.
Recently, the company announced its first quarter results with massive earnings of $234 million. Its payout ratio is also at a manageable level, which is currently standing at, 61.5%. Cash flow from operations is also growing year over a year, which is a positive sign for dividend investors. It is worth noting, however, that business and financial results can be impacted by weather conditions. Thus in the last quarter the company has been able to increase its earnings by $78 million in part due to normal weather conditions.
Conclusion
The Southern Company (NYSE:SO) has a healthy financial position with diversified operations. With the improving economy, all of its business segments have shown positive trends. On the other hand, Duke Energy has been increasing its revenue base with acquisitions, which have led it to increase revenue by 62.5% in the latest quarter. With the recent dividend increase of 5.64%, DTE Energy is also turning out to be an attractive choice for dividend investors.
siraj sarwar has no position in any stocks mentioned. The Motley Fool recommends Southern Company.
The article The Three Best Dividend Stocks from the Utilities Sector originally appeared on Fool.com.
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