NextEra Energy said on October 12, 2023 that its board of directors declared a regular quarterly dividend of $0.47 per share ($1.87 annualized). Previously, the company paid $0.47 per share.
Shares must be purchased before the ex-div date of November 22, 2023 to qualify for the dividend. Shareholders of record as of November 24, 2023 will receive the payment on December 15, 2023.
At the current share price of $54.49 / share, the stock’s dividend yield is 3.43%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.21%, the lowest has been 1.61%, and the highest has been 3.79%. The standard deviation of yields is 0.32 (n=236).
The current dividend yield is 3.86 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.47. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.34%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 3514 funds or institutions reporting positions in NextEra Energy. This is a decrease of 99 owner(s) or 2.74% in the last quarter. Average portfolio weight of all funds dedicated to NEE is 0.66%, a decrease of 7.94%. Total shares owned by institutions decreased in the last three months by 2.55% to 1,739,971K shares. The put/call ratio of NEE is 0.58, indicating a bullish outlook.
Analyst Price Forecast Suggests 49.84% Upside
As of October 5, 2023, the average one-year price target for NextEra Energy is 81.65. The forecasts range from a low of 53.53 to a high of $107.94. The average price target represents an increase of 49.84% from its latest reported closing price of 54.49.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for NextEra Energy is 24,362MM, a decrease of 9.60%. The projected annual non-GAAP EPS is 3.11.
What are Other Shareholders Doing?
Jpmorgan Chase holds 75,361K shares representing 3.72% ownership of the company. In it’s prior filing, the firm reported owning 72,585K shares, representing an increase of 3.68%. The firm decreased its portfolio allocation in NEE by 10.85% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 63,103K shares representing 3.12% ownership of the company. In it’s prior filing, the firm reported owning 62,561K shares, representing an increase of 0.86%. The firm decreased its portfolio allocation in NEE by 10.41% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 48,175K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 46,369K shares, representing an increase of 3.75%. The firm decreased its portfolio allocation in NEE by 9.42% over the last quarter.
Bank Of America holds 41,386K shares representing 2.05% ownership of the company. In it’s prior filing, the firm reported owning 44,190K shares, representing a decrease of 6.78%. The firm decreased its portfolio allocation in NEE by 7.99% over the last quarter.
Geode Capital Management holds 36,671K shares representing 1.81% ownership of the company. In it’s prior filing, the firm reported owning 35,233K shares, representing an increase of 3.92%. The firm decreased its portfolio allocation in NEE by 9.37% over the last quarter.
NextEra Energy Background Information
(This description is provided by the company.)
NextEra Energy, Inc. is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns Florida Power & Light Company, which is the largest rate-regulated electric utility in the United States as measured by retail electricity produced and sold, and serves more than 5.6 million customer accounts, supporting more than 11 million residents across Florida with clean, reliable and affordable electricity. NextEra Energy also owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin. A Fortune 200 company and included in the S&P 100 index, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity. NextEra Energy is ranked No. 1 in the electric and gas utilities industry on Fortune’s 2020 list of ‘World’s Most Admired Companies’ and received the S&P Global Platts 2020 Energy Transition Award for leadership in environmental, social and governance.
Additional reading:
- Letter, dated August 10, 2023, from NextEra Energy Capital Holdings, Inc. to The Bank of New York Mellon, as trustee, setting forth certain terms of the Series L Debentures due September 1, 2025 effective August 10, 2023
- Guaranteed Securities
- One Hundred Thirty-Sixth Supplemental Indenture dated as of May 1, 2023 between Florida Power & Light Company and Deutsche Bank Trust Company Americas, Trustee
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