NextEra Energy’s Planned 2025 Dividend Hike? 10%. And Planned for 2026? That’s 10%, Too.
NextEra Energy (NYSE: NEE) is offering investors a dividend yield of roughly 2.8%. The average utility stock, using the Utilities Select Sector SPDR ETF, is yielding a touch under 2.7%. From this perspective, you might think that NextEra Energy is a run of the mill utility stock. Nothing could be further from the truth. Here’s why dividend growth investors should like what they see with NextEra Energy.
Most utilities focus on providing electricity or natural gas to customers. NextEra Energy does this, too. Its largest division owns regulated electric assets in the state of Florida. This state has benefited from in-migration for years. That has helped lead to slow and steady growth at NextEra Energy, since more customers means more revenue. And more customers generally makes it easier to get capital spending plans approved by regulators. If this were all that NextEra Energy did, it would be an attractive utility but not necessarily an exceptional one.
Image source: Getty Images.
[#item_full_content]
