NextEra Energy: A Premium Business With A Premium Valuation

Mar. 18, 2023 5:09 AM ETNextEra Energy, Inc. (NEE)23 Comments
Allen Greathouse profile picture
Allen Greathouse
976 Followers

Summary

  • On top of a strong business model, NextEra also benefits from superior demographics in the sun-belt state of Florida, one of the fastest-growing states in the nation.
  • NextEra has grown its revenues by roughly 48% over the last decade, though this might seem low, in the world of utilities, this is quite fast.
  • Within the utility industry, high dividends are common, but what is often uncommon is fast dividend growth.
  • NextEra is one of those rare exceptions that delivers on this metric having nearly tripled its payout over the last decade!

Closeup of Florida on a papyrus map

KeithBinns/E+ via Getty Images

Introduction

Florida, the sunshine state, is home to several icons, the Miami heat, and Disneyworld, but also, one of the best-performing utility stocks of the S&P 500, NextEra Energy Inc (NYSE:NEE).

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NextEra energy

Florida Public Service Commission

Florida Public Service Commission

Macrotrends

Macrotrends

NextEra Investor Relations

NextEra Investor Relations

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This article was written by

Allen Greathouse profile picture
976 Followers
MBA Grad, Financial Analyst Current portfolio strategy consists of a variety of growth stocks, and dividend growth stocks with an emphasis on high quality, and scalability. Primarily a buy and hold investor with >30 year time horizon.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Please note that this article is for informational purposes only and should not be construed as investment advice. It is important to do your own research and consult with a financial advisor before making any investment decisions.

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