Two Utility Dividend Plays Are Quietly Beating XOM, CVX On Yield Amid Iran-Driven Oil Rally — Does Retail Know?
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DUK stock has provided the best dividend yield in the group at 3.6% as of Sept. 2, while WEC stock comes close, providing investors with a dividend yield of 3.5%. Morningstar has a fair value estimate of $131 on DUK stock, and projects a forward dividend yield of 3.61%.The analyst has a fair value estimate of $116 on WEC stock, and projects a forward dividend yield of 3.59%.Energy companies have made a comeback as strong market performers amid the recent conflict in the Strait of Hormuz and rising oil prices. While the top energy companies have delivered double-digit price growth so far in 2026, two smaller energy utility companies have outperformed them in dividend returns. Duke Energy Corp. (DUK) and WEC Energy Group Inc. (WEC) are among the top dividend stocks in the market, according to a recent report from Morningstar. DUK, WEC Vs Oil Majors In Terms Of Dividend YieldDUK stock has provided the highest dividend yield in the group at 3.6% as of Sept. 2, according to data from Fiscal.ai. WEC stock comes close, offering a dividend yield of 3.5%. Meanwhile, among the top energy stocks, Chevron Corp. (CVX) has a dividend yield of 3.3%, while rivals Exxon Mobil Corp. (XOM) and ConocoPhillips (COP) provide dividend returns of 2.5% each. DUK Stock: What Morningstar Expects In Terms Of DividendMorningstar has a fair value estimate of $131 for DUK stock, implying nearly 9% upside from its last close. The analyst has a ‘Narrow’ Economic Moat Rating on the shares, but projects a forward dividend yield of 3.61%.Morningstar said in a note that Duke operates in constructive regulatory environments where much of its regulated business operates and has better-than-average economic fundamentals in its key regions, according to senior analyst Andrew Bischof. The company’s liquidity position and cash flow generation provide confidence that it can maintain and increase its dividend. Morningstar expects a 5% annual dividend growth from the company over time.As of June 30, 2026, the company generated $4.27 billion in operating cash flow. Duke Energy had a balance of $850 million in cash, cash equivalents and restricted cash at the end of the period, compared to $442 million in the previous year’s comparable quarter. WEC Stock: What Morningstar Expects In Terms Of DividendAs per Morningstar, WEC Energy is one of the best dividend stocks to buy in the market. The analyst has a fair value estimate of $116 for WEC stock, implying nearly 10% upside from its last close. The analyst has a ‘Narrow’ Economic Moat Rating on the shares, but projects a forward dividend yield of 3.59%.Morningstar said WEC has built a narrow economic moat through service-territory monopolies and efficient-scale advantages, adding that management is targeting a 65%-70% dividend payout ratio. The analyst expects dividend growth to average 6.5%.As of June 30, 2026, the company generated $2.21 billion in operating cash flow. WEC had a balance of $95.9 million in cash, cash equivalents and restricted cash at the end of the period, compared to $69.2 million in the previous year’s comparable quarter. DUK, WEC Stocks: Returns, Retail SentimentDUK stock has gained about 5.55% so far in 2026, while WEC stock has returned nearly 3% in the same time. However, the top energy stocks, XOM, CVX and COP have outperformed the two smaller companies in terms of returns for the year. On Stocktwits, retail sentiment around DUK and WEC stocks was ‘bearish’ at the time of writing. One user said, “$DUK let’s go duke shares n options and AI and data centers and of course energy lots of energy!!!!”Another user said over the weekend, “$WEC This next week may be a great move for WEC.”However, sentiment for XOM, CVX, and COP was ‘bullish,’ ‘extremely bullish,’ and ‘neutral.’For updates and corrections, email newsroom[at]stocktwits[dot]com
DYAX Investor Sentiment
Bullish (Long) 35% · Bearish (Short) 65%
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