Assessing the Investment Potential of NextEra Energy Stock in 2024

Sunday, 19 May 2024, 07:40

NextEra Energy (NYSE: NEE) reported strong earnings for Q1 2024, showing an 8% gain in adjusted earnings per share. With promising financial outlook and plans for 6-8% yearly earnings growth and 10% dividend growth through 2026, the stock is attracting attention. While the stock has rallied over 30% in the past six months, investors need to carefully consider the current valuation against dividend yield and growth prospects.
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Assessing the Investment Potential of NextEra Energy Stock in 2024

NextEra Energy posted good results

In Q1 2024, NextEra Energy's adjusted earnings rose to $0.91 per share, up from $0.84 last year, indicating a solid 8% gain.

Both the regulated utility (Florida Power & Light) and clean energy operations had good quarters, with net income per share up in each division.

Management's Long-Term Plan

Management targets earnings growth of 6-8% per year through 2026 and a 10% annual dividend growth.

These figures are significant for a utility, suggesting a strong business outlook.

Is NextEra Energy worth buying?

The stock has rallied strongly, with share prices up over 30% in the past six months, but the current forward dividend yield is around 2.7%, making it an average choice for income-seeking investors.

  1. For investors focused on dividend growth, NextEra Energy's promising dividend growth prospects make it an attractive option.
  2. This is supported by the company's uniquely diversified utility business.

Not for everyone, but ideal for some

Although NextEra Energy may not suit all investors, it remains a solid dividend growth stock worth considering for investors seeking long-term returns.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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