2. NextEra Energy, Inc. (NYSE:NEE)
Years of Consistent Dividend Growth: 26
5-Year Compound Average Dividend Growth Rate: 11.71%
NextEra Energy, Inc. (NYSE:NEE) is a Florida-based electric services company that provides clean and reliable electricity to approximately 6 million customers in Florida. In September, BMO Capital lifted its price target on the stock to $100 with an Outperform rating. The firm remained positive about the company’s industry-leading profile due to its strong fundamentals.
In Q2 2022, NextEra Energy, Inc. (NYSE:NEE) reported an operating cash flow of over $2.8 billion, up from $1.9 billion in the previous quarter. The company’s free cash flow stood at $606 million, compared with $338 million in the preceding quarter. Its revenue for the quarter was $5.1 billion, up 31.8% from the same period last year.
NextEra Energy, Inc. (NYSE:NEE) currently pays a quarterly dividend of $0.425 per share. This dividend growth stock has a dividend yield of 2.06%, as recorded on September 25. The company holds strong dividend history, raising its payouts consistently for the past 26 years. Its five-year dividend CAGR stands at 11.71%.
As of the close of Q2 2022, 59 hedge funds tracked by Insider Monkey owned stakes in NextEra Energy, Inc. (NYSE:NEE), compared with 64 in the previous quarter. These stakes hold a collective value of $2.76 billion. Fisher Asset Management owned the largest stake in the company in Q2, worth $1.25 billion.
ClearBridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its recently-published Q2 2022 investor letter. Here is what the firm has to say:
“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world and energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.
The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”
