From: Jamie Switzer [mailto:Jamie.SWITZER@raymondjames.ca]
Sent: Tuesday May 18, 2010 8:57:51 AM PDT
Subject: *** Portfolio Recommendation – Buy Duke Energy Corp
Action: Buy Duke Energy Corp (DUK-US)
Current Price: $17.00 USD
Dividend Yield: 5.62%
As we have mentioned numerous times of late, our focus in the short to medium term will be on defensive, high-yielding stocks that are “acting well” in the current environment. The opportunity to pick up a Citigroup in the US or Canadian bank will arise but we think the markets will continue to experience headwinds in the short term as this European crisis plays out. Talk of disbanding the Euro currency is the latest story making the rounds as some of the healthier nations search for ways to remove themselves from lesser-lights.
Duke Energy has performed remarkably well through a number of recent market conditions and has become the consummate “defensive play.” Duke provides electric and gas services to nearly 4 million homes throughout the US and prides itself on affordable, reliable, and clean products. It produces 35,000 megawatts of electric generating capacity in the Carolina’s and Midwest, and natural gas distribution services in Ohio and Kentucky. Duke has $57 billion USD in total assets, employs almost 19,000 people, and posted operating revenues of $12.7 billion in 2009.
Shares of Duke are attractive not only from a dividend and growth perspective, but also on valuation, with a forward looking p/e (price to earnings) ratio of only 13.25. We feel this is the ideal type of equity holding to add to our portfolios in this time of uncertainty and one that will “pay you while you wait” for a better investing environment.
Please contact us by phone to discuss this recommendation and how it fits with your overall investment strategy.
Marc & Jamie
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This recommendation may not be suitable for all individuals. As each situation is different, please arrange to contact us to discuss and determine the suitability of this security to your own individual circumstances. This message is only to be read by the addressee and is not for public distribution. The sender is not responsible for distribution of this message beyond the addressee intended. All information in this message is confidential to the addressee and should be treated as such. Raymond James Ltd. is a member CIPF. This expresses the opinions of the authors, Marc Latta and Jamie Switzer, and not necessarily reflects those of Raymond James.
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This newsletter expresses the opinions of the writers, Marc Latta and Jamie Switzer, and not necessarily those of Raymond James Ltd. (RJL) Statistics and factual data and other information are from sources believed to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. It is not meant to provide legal, taxation, or account advice; as each situation is different, please seek advice based on your specific circumstance. RJL and its officers, directors, employees and their families may from time to time invest in the securities discussed in this newsletter. It is intended for distribution only in those jurisdictions where RJL is registered as a dealer in securities. Any distribution or dissemination of this newsletter in any other jurisdiction is strictly prohibited. This newsletter is not intended for nor should it be distributed to any person residing in the USA. Within the last 12 months, Raymond James Ltd. has undertaken an underwriting liability or has provided advice for a fee with respect to the securities of the Royal Bank of Canada. Raymond James Ltd is a member of the Canadian Investor Protection Fund.