Duke Energy 2012 Annual Report Download - page 7

shareholder return was approximately 32 percent,
significantly outperforming the 17 percent return
of the S&P 500 and the Philadelphia Utility Index
(UTY), a composite of 20 U.S. utilities.
In 2012, we delivered adjusted diluted earnings per
share of $4.32, near the top end of our target range
of $4.20 to $4.35 for the year. Since 2009, we have
consistently targeted a compound annual growth rate
of 4 to 6 percent in our adjusted diluted earnings
per share. Through the end of 2012, we have met
this objective, as we achieved a compound annual
growth rate of approximately 6 percent since 2009.
Our dividend is an important part of the value
proposition we offer shareholders. In 2012, we
raised our quarterly cash dividend to shareholders
by approximately 2 percent. Not only are we
consistently growing the dividend, but also 2013
is our 87th consecutive year of paying a quarterly
cash dividend on our common stock. Based on the
current dividend, we are paying more than $2.1
billion in dividends annually.
Duke Energy has a proven track record of delivering
consistent financial results. From 2013 through
2015, our objectives are to continue growing annual
adjusted diluted earnings per share by an average
of 4 to 6 percent, to continue growing the dividend
within a 65 to 70 percent target payout ratio, and to
maintain strong, investment-grade credit ratings.
For employees
I was impressed by our employees’ clear focus and
quiet strength throughout 2012, despite the merger-
related uncertainty and organizational change. Their
commitment to our mission and to finding better
ways to carry it out has been exemplary.
Our employees’ 2012 safety performance was a
testament to their focus. We finished the year with the
lowest Total Incident Case Rate in our history, though,
tragically, an employee died after being rear-ended by
a vehicle, and a contractor was fatally injured. We take
our commitment to safety very seriously and always
strive for zero injuries and fatalities.
Along with other executives, I devoted considerable
time last year to engaging with employees across
the company: small-group dialogue sessions, large
open-forum meetings and informal visits to our
Five
Years
6.7%
Duke Energy Corporation
S&P
500
Index
1.7%
Philadelphia
Utility
Index
0.1%
Three
Years
13.1%
Duke Energy Corporation
S&P
500
Index
10.9%
Philadelphia
Utility
Index
7. 8 %
Total shareholder return*
* For the periods ended Dec. 31, 2012
One
Year
1.4%
Duke Energy Corporation
S&P
500
Index
16.0%
Philadelphia
Utility
Index
-0.6%
Chairman’s Letter to Stakeholders
5