Looking for Reliable Dividends? Read This
If you’re looking for reliable dividends, few sectors are
worth checking out more than utilities. Known for its durable, recurring
business model, the utilities sector has produced plenty of safe and rising
income plays over the decades.
And sometimes investors get more than just dividend checks.
NextEra Energy Inc (NYSE:NEE), for instance, is an electric
utility holding company headquartered in Juno Beach, FL. I featured the company
in my paid advisory Income for Life back in April 2018. Since then, including
automatic dividend reinvestment, NEE stock has delivered a total return of more
than 100%.
NextEra Energy is the parent company of Florida Power &
Light Company, which is the largest rate-regulated electric utility in the U.S.
as measured by retail electricity produced and sold. Florida Power & Light
serves more than 5.6 million customer accounts across Florida. (Source:
“February/March 2021 Investor Presentation,” NextEra Energy Inc, last accessed
February 23, 2021.)
The electric utility business is certainly a good one to be
in for a dividend play, but the reason for the rise in NextEra Energy stock
likely had something to do with the company’s clean energy endeavors. You see,
NextEra Energy Inc also owns NextEra Energy Resources, LLC, which, along with
its affiliates, is the world’s largest generator of renewable energy from wind
and solar. It’s also a world leader in battery storage.
Of course, if you’ve been following the stock market, you’d
know that, after a massive bull run for the past year or so, clean energy
stocks are now experiencing a pullback.
NEE stock was affected by this downward move, too. Since
reaching a high of $86.87 per share on January 25, NextEra Energy stock has
fallen by about 13.5% to $75.10. This could be a result of some profit-taking,
or perhaps sentiment has started to change toward the sector.
But here’s the thing: from a dividend investor’s
perspective, NEE is still an attractive ticker.
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