Income is a big part of investors' returns. Stocks, mutual funds and fixed income ideas in this column are featured because they are relatively solid in their ability to pay dividends or interest. We're giving income investors a resource to start their research for investments that give better yields with lower risk.

The Commercial Power segment owns, operates, and manages power plants, as well as engages in the wholesale marketing and procurement of electric power, fuel, and emission allowances related to plants. This division also retails electricity to customers in southwest, west central, and northern Ohio.

The International Energy subsidiary owns, operates, and manages power generation facilities; sells and markets electric power and natural gas; and produces natural gas liquids, methanol, and methyl tertiary butyl ether. It serves retail distributors, electric utilities, independent power producers, marketers, and industrial/commercial companies.

The company also develops, owns, and operates a fiber optic communications network, primarily in the southeast U.S., serving wireless, local and long-distance communications companies, Internet service providers, and other businesses and organizations. Duke Energy Corporation was founded in 1916 and is headquartered in Charlotte, North Carolina.

While there was a break in revenue growth in 2009 (to $12.731 billion from $13.207 billion), sales recovered to $14.272 billion in 2010. This year, 13 analysts have a consensus estimate of $14.14 billion (with a range of $13.24 billion to $14.66 billion). Next year, they see small growth to $14.75 billion (with a range of $13.75 billion to $16.34 billion).

Earnings took their break in 2008, dipping to $1.01 from $1.20 in 2007. But they've been heading higher ever since: $1.13 and $1.34 respectively. This year, 20 analysts have a consensus opinion of $1.38 (with a range of $1.35 to $1.44), then adding a little more next year to $1.41 (the range is $1.35 to $1.50). For the third quarter (ending September 30), look for 46 cents a share compared to 51 cents last year in the third. In the fourth quarter, expect 22 cents vs 21 cents in last year's final period.

The latest news for DUK is its acquisition of Progress Energy. It's paying 768 million shares (about $14 billion) for the utility and has the approval of Kentucky regulators. More approvals are needed, from North and South Carolina regulators as well as the Federal Energy Regulatory Commission and a few other federal agencies. Management thinks the deal will finalize by the end of this year. In order to make this purchase accretive immediately, expenses will have to be cut and better efficiencies enacted.

Duke is looking to raise rates. In North Carolina, it's asking for $646 million in hikes (up 15%). In South Carolina, it's looking for rate relief of $216 million (up 15%). If approved, customers will see the increases in February of 2012.

The company is busy building new generating facilities: 2 gas fired plants are set to open in 2011 and 2012 in the Carolinas. They cost $1.41 billion. Next year, look for a new coal fired plant to fire up. That one should finish with a budget of $2.4 billion. All three should come in on budget. There's one though that has gotten beyond estimates. It's a coal gasification plant in Indiana, originally thought to cost $2.35 billion. Currently estimates are for the finished facility to carry a $2.88 billion price tag. Management has filed with the regulators a cap on the cost to consumers of $2.72 billion.

The dividend each quarter is 25 cents or $1.00 for the next year. Its been raised regularly since 2007, going from 86 cents to 90 to 94 to 97. There's definitely a pattern here. It takes about 64% of earnings to pay it. It's usually distributed in mid March, June, September and December. The yield is 5.3%.

Essential numbers: Market Cap is $25.16 billion. Trailing P/E is 12.29; Forward P/E is 13.4. Price to sales ratio is 1.75. Price to book is 1.11. Book value is $16.95. Operating margin for the last 12 months was 20.78% while Profit margin was 14.29%. Return on equity was 9.31% and Return on assets was 3.20%. Total cash is $1.37 billion for $1.03 a share. Total debt is $18.99 billion. Total debt to equity is 83.67%. Current ratio is 1.29. Beta is a very low .40. There are 1.33 billion shares Outstanding. Institutions have 47.7% of the stock.

Income investors who know the utility sector will recognize this yield as above most. And it seems to be relatively safe with a management and board that raised the payout consistently over the last 4 years. Add the relatively stable stock price, and DUK is an attractive alternative to stocks that have no dividends and high volatility.