Duke Energy is one of the largest US utilities, with regulated utilities in the Carolinas, Indiana, Florida, Ohio, and Kentucky that deliver electricity to 8.2 million customers. Its natural gas utilities serve more than 1.6 million customers.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. That's a recent rarity, as for the past decade-plus, the performance record has favored growth. But in 2022, The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks that year. While growth stocks have retaken the lead since 2023, the Federal Reserve continues to keep interest rates high to fend off inflation. This could possibly cap multiple expansion for growth companies in coming quarters. In any event, the value sector is the place to achieve income.

Duke Energy, the largest electric power holding company in the U.S., has a market cap of approximately $87 billion and total plant and equipment assets at cost is about $178 billion. After the sale of its commercial renewables business in 2023, it has become a fully regulated utility company. It serves approximately 8.2 million electric customers in six states in the Southeast and Midwest and 1.6 million natural gas customers. Duke also has the largest regulated nuclear generation fleet in the U.S., with six nuclear generators in North and South Carolina. Electricity accounted for about 92% of total 2023 revenue. Consolidated generating capacity is about 50,000 megawatts. Duke is focusing expansion on transmission and renewable generation. It plans to own or purchase 16,000 megawatts of renewable energy capacity by 2025 and to eliminate coal usage by 2050. The company's 2023 generation fuel mix was 17% coal, 43% natural gas, 37% nuclear, and 3% renewables. DUK shares are a component of the S&P 500.