In 2020, Duke Energy achieved adjusted earnings per share (EPS) of $5.12, compared to $5.06 in 2019, representing continued growth. Despite the challenges presented during the year, Duke Energy advanced its long-term strategy to achieve a clean energy future, delivered on its commitments to customers and shareholders and positioned the company for additional growth in the years ahead.
The electric, gas and commercial renewables businesses delivered positive results in 2020, which were supported by significant customer growth in our electric and gas businesses, rate case activity in Indiana, Kentucky, North Carolina and Florida, and new renewables projects placed in service.
In 2020, the company swiftly responded to COVID-19 and major storms with exceptional cost management, producing $450 million in mitigation actions.
The company also took proactive steps to support the balance sheet, helping pave the way for an increase in the company’s five-year capital plan to fund clean energy investments, grid improvement projects and enhance customer experience. These efforts also bolstered the company’s earnings growth potential as it delivers sustainable value for shareholders.
Given 2020 results and a robust five-year $59 billion capital plan, the company announced its 2021 adjusted EPS guidance range of $5.00 to $5.30, with a midpoint of $5.15 per share – and increased its long-term adjusted earnings growth rate to a range of 5 to 7 percent through 2025, based on the 2021 midpoint.
Duke Energy remains committed to offering an attractive, long-term value proposition to its shareholders. 2020 marked the company’s 14th consecutive year of paying an increased dividend to its investors – growing 2 percent. The company’s dividend yield continues to be one of the highest in the industry at 4.1 percent as of February 9, 2021.
The company also added a fourth transaction to its growing list of capital raising efforts involving minority-owned firms serving in lead underwriting roles – a clear demonstration of Duke Energy’s commitment to diversity and inclusion. Duke Energy Progress (DEP) completed a $700 million debt offering with seven diverse and minority-owned financial firms.
The company also hosted its inaugural Environmental, Social and Governance (ESG) Day during 2020 – highlighting those important issues to shareholders.
Duke Energy’s total shareholder return – measured as the change in stock price plus the reinvestment of dividends – for 2020 was 4.8 percent, outperforming the Philadelphia Utilities Index (UTY) by approximately 210 basis points.
Duke Energy is confident in its climate strategy, vibrant service area growth, proven capability to control costs and consistent work with stakeholders will achieve constructive outcomes that benefit a wide range of stakeholders. The company is confident in the road ahead, focused on delivering strong, long-term returns for our shareholders and providing industry-leading service to our customers for years to come.