Buy Duke Energy While It Yields Nearly 5%

Dividend stocks are turning out to be the best place to ride out this tough market. Even better is investing in a company that is in a stable and relatively recession-proof industry like pharmaceuticals, and utilities. Combining dividends with a defensive sector is likely to be a winning strategy for the rest of the year. One more way to boost this strategically is to buy dividend stocks when there are pullbacks in the price for either company specific reasons or just because of a general market decline. One stock that currently fits the criteria of defensive investing, dividends and buying on dips is Duke Energy Corporation (DUK).

Duke has been raising the dividend slowly, but surely for the past few years. What's even more impressive is that it has been paying a dividend for nearly 90 years. Furthermore, the payout ratio is at reasonable levels, so the company can continue with annual increases. Plus, analysts expect earnings to grow from $4.28 this year, to $4.45 in 2013, and earnings growth often leads to dividend growth.

Source: Seeking Alpha

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