#1 - NextEra Energy (NYSE:NEE)
NextEra Energy (NYSE: NEE) - Renewable energy is here to stay. So when you look at utility stocks, the companies that are generating revenue from renewable energy, as well as traditional utility services, are smart plays. That's the case with NextEra Energy. Based just by market cap, NextEra is the largest electric utility in the United States. One of the reasons for that is the company has two distinct business units. The first is a traditional utility, Florida Power & Light. The utility services south Florida, which continues to be one of the fastest growing population centers in the country. In fact, NextEra services a customer base that numbers over 5 million.
But what should also get investors excited is their subsidiary, NextEra Energy Resources that builds and operates solar energy and wind farms. As more states mandate more of their power come from renewable sources, NextEra stands to profit. In fact, NextEra Energy Resources accounts for nearly 50% of the company’s overall business.
Over the last ten years, NextEra has managed to increase earnings and dividends at a rate of approximately 8% per year. One analyst sees this trend continuing and is forecasting NextEra Energy to generate 6%-8% annual earnings growth over the next five years. The stock is up nearly 15% year-over-year and it’s P/E ratio of 13.83, is consistent with their position as a category leader. The dividend yield is currently around 2.58%, the lowest it’s been in five years. However, with an expectation of continued robust earnings, investors shouldn’t let a modest dividend scare them away.
About NextEra Energy
NextEra Energy, Inc, through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear,natural gas, and other clean energy. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets.
Read More - Current Price
- $77.35
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $86.54 (11.9% Upside)
