Can Coal (Yes, Coal) Drive Duke Energy Corp (DUK) Stock Higher?

Foolish bottom line

At the end of the day the rise in natural gas prices will likely only slow its eventual ascension to the top spot as a fuel source. Gas turbines are becoming increasingly more efficient and gas-fired plants do not require costly scrubbers. But the closing of the gap makes it much easier for Duke Energy Corp (NYSE:DUK) to supply spot markets with coal generation, even if most power generation is allotted to long-term supply contracts. It should also alleviate pressure on management to make “the switch”. That being said I think that this trend definitely has the potential to push shares higher. Until the market catches on investors can sit back and enjoy a 4.5% dividend.

The article Can Coal (Yes, Coal) Drive Duke Energy Stock Higher? originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool recommends Dominion Resources and Southern Company.

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