4 Dividend Stocks to Double Up On Right Now
The Motley Fool
by newsfeedback@fool.com (Catie Hogan)February 25, 2026
AI-Generated Deep Dive Summary
Growth and income investors are turning to energy and utility stocks as AI demand fuels unprecedented growth in these sectors. Among the top picks are four dividend-paying companies offering strong returns and stability despite rising stock prices. Duke Energy (NYSE: DUK), a leading U.S. utility provider, stands out with its century-long dividend history and consistent dividend increases since 2010. While Duke's stock is currently trading at a premium with a forward P/E ratio of 18 and a PEG ratio of 2.5, its long-term growth prospects make it a compelling investment.
Duke Energy is benefiting from surging demand driven by AI advancements. The company has announced a $103 billion investment over five years to expand its capacity, targeting a 9% annual growth rate through 2030. This growth is expected to translate into 5-7% earnings-per-share increases during the same period. Despite its premium valuation, Duke's solid quarterly dividend of $1.065 per share and strong financial outlook justify consideration for investors seeking both income and growth.
The surge in AI-related demand is reshaping the energy and utility landscape, creating opportunities for companies like Duke Energy to invest heavily in infrastructure. This trend highlights the importance of selecting dividend stocks that align with long-term growth trajectories. As these sectors continue to evolve, they offer a unique blend of income stability and potential appreciation, making them attractive options for investors looking to balance risk and reward.
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Originally published on The Motley Fool on 2/25/2026