NextEra Energy
NEE (NYSE)
NextEra Energy (NEE) stands out as a highly rated utility, boasting a consistent dividend yield of 2.71% and a remarkable history of increasing payouts for 32 consecutive years. With significant partnerships supplying gigawatt-scale solar energy to major companies like Meta and Google, plus a long-term nuclear deal with Alphabet, NEE is well-positioned for growth. Analysts are optimistic, with a consensus rating of Buy and a median 12-month price target of $89.50, reflecting confidence in its strategic focus on renewable energy and stable revenue from Florida Power & Light.
Pros:
- Leading utility with strong growth potential
- Long history of dividend increases
Cons:
- Recent underperformance in 3-year return
- Market conditions affecting growth
NextEra Energy (NEE) may be a suitable investment for those seeking exposure to the utility sector with a focus on renewable energy, given its stable dividend yield and strong historical performance. However, potential investors should consider the relatively modest 5-year return and assess their risk tolerance in relation to the company's growth strategy and market conditions.