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Nov.05
7:48 PM ET
Wednesday, 5 Nov 2008
Is Dividend-Paying Duke Now a Dog?

Duke Energy, a recent Mad Money top pick for its 5.9% yield, reported a disappointing quarter, sending the stock down $1.30 to $15.62 from $16.90. 

As bad as that sounds, Cramer found logical yet mostly unavoidable reasons for the miss: storm-related costs, a mark-to-market impact of its hedges and an accelerated write-down from a real-estate joint venture.

And there are positives happening at this company, too. An energy-efficiency agreement with Ohio could end up raising $11 billion annually for related research and development if other states get on board.

Duke [DUK  Loading...      ()   ] should also benefit from lower coal prices, even if an Obama administration curls its nose at that commodity. Plus, has money to spare, raising enough debt to cover its 2009 cap ex and dividends. There’s even some wind exposure here with the potential to grow in the double digits.

Of course, Cramer doesn’t recommend stocks with out rigorous research, and there’s no better primary source than the company’s CEO. Watch this video with Duke Energy’s Jim Rodgers for a more in-depth look at the company and its prospects.

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