NextEra Energy (NEE) is something akin to the holy grail of dividends. Imagine, if you will, a steadfast companion that has met your financial needs like a well-tailored blazer-consistent, reliable, and not at all something you’d discard in a fit of pique. Since 2007, it has gracefully increased its payout at a dazzling 10% compound annual rate. And yes, it has managed to raise its payment every single year for the last three decades. A feat I almost envy!
As luck would have it, right now is the moment to scoop up this elite dividend stock. Picture this: shares are down 10% from their 52-week high, all while the S&P 500 frolics about with a cheerful 15% gain over the past year. The S&P 500 is performing like a sprightly pup, while our NextEra Energy is sitting silently, perhaps contemplating life’s deeper questions. And so, its dividend yield has pleasantly increased to about 3%, while the S&P 500’s has sadly trended to 1.2%. Will I invest today? Why yes, I shall! An inviting income stream waiting to be locked away for a lifetime sounds just like my kind of plan.
High-end growth for at least the next few years
Now, let’s delve into matters of investment. No one, I daresay, pours more cash into America’s energy infrastructure than NextEra Energy. Think of it as that friend who insists on paying for dinner every time, ensuring you always dine out. Their hefty investments have culminated in a world-leading renewable energy portfolio, and they’re planning to spend a breathtaking $120 billion on America’s energy infrastructure through 2027. It’s all about expanding their electric utility in Florida and growing their renewable energy offerings. Kind of remarkable, really!
The government-regulated rate structures and those oh-so-comforting long-term, fixed-rate contracts provide NextEra with a sumptuous buffet of predictability regarding earnings growth over the years to come. Sounds delightful, doesn’t it?
Currently, the utility company is expecting an adjusted earnings per share growth of 6% to 8% compounded annually through 2027 from 2024’s baseline. A conservative outlook, perhaps, but then again, CEO John Ketchum seems audaciously optimistic, willing to risk disappointment if they can’t deliver results at or near the top of their adjusted earnings per share expectations. What a thrill-ride we’re on!
Furthermore, NextEra plans to grow its dividend by at least 10% annually through 2026-thanks to a reasonable dividend payout ratio that would make even my cautiously optimistic heart skip a beat.
Ample power to continue growing for years to come
Here’s where the fun truly begins: NextEra is poised to continue its earnings and dividend growth well past the next couple of years. You see, U.S. power demand is expected to skyrocket, predicted to grow by an eye-popping 55% by 2040 compared to levels back in 2020. And what’s contributing to this frenzy? Ah, yes-AI data centers, industries moving back home, and the electrification of our beloved automobiles. Who can resist such attractions?
Our dear country needs to embrace the challenge of adding around 450 gigawatts of electricity-generating capacity by 2030. Challenging, yes, but I do adore a good puzzle! With the long lead time required to establish new natural gas and nuclear capacity, renewable energy will undoubtedly step in like a superhero we never knew we needed.
This bodes fabulously well for NextEra Energy, who holds the proverbial keys to renewable energy’s burgeoning market. They possess the scale, expertise, and financial klout to commandeer significant portions of future renewable energy development projects. Glorious earnings growth should follow, ideally without turning into an unseemly squabble over who gets to choose the film at movie night.
A little extra? NextEra has the acumen to also explore and develop other clean energy sources. With a leading role in constructing gas-fired power plants and a suite of nuclear plants at their disposal, they’re also toying with promising energy technologies like hydrogen and small modular reactors. Talk about a power move!
A powerful wealth creator
In conclusion, NextEra Energy is on a supersonic trajectory to grow its earnings, driven by surging U.S. power demand. This should effortlessly enable them to enhance their already high-yielding dividend. I can envision the synergy of income and growth leading to robust returns for long-term investors like myself, especially when purchasing is done during their current, rather attractive dip-truly, a fine stock to heroically embrace for years to come. So, onward we invest!
Units of Dividend Yield: 3%. Dreams of A Retirement by the Beach: 1. Absolute Adoration for NextEra Energy: Infinite. 🏖️
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2025-08-26 11:39