NextEra Energy’s 3Q15 Guidance and Dividend Expectations




NextEra Energy (NEE) expects to generate earnings per share (or EPS) of $5.40–$5.70 for all of fiscal 2015. Since the company already reported EPS of $3.04 in 1H15, it’s expected to generate EPS of $2.36–$2.66 in 2H15.

For fiscal 2016, NEE expects to generate EPS of $5.75–$6.25. The company is looking forward to healthy EPS growth of 5%–7% annually through 2018. It expects to undertake capital expenditure of $3.4–$3.8 billion in fiscal 2015, $3.9 billion–$4.3 billion in fiscal 2016, and an annual average of $3.3 billion–$3.8 billion in fiscal 2017 and fiscal 2018.

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Dividend expectations

NextEra Energy has reported growing annual dividends continuously over the past 19 years. The company recently declared a 4Q15 dividend of $0.77 per share, the same as what it reported for the first three quarters of 2015. The company declared $3.08 in dividends per share in 2015 or 55% of expected EPS.

Wall Street analysts expect the company to report $3.43 in dividends per share in 2016 and $3.95 in 2017. These expectations represent dividend growth of 11.5% and 15.0% in 2016 and 2017, respectively.

NEE is part of the iShares Select Dividend ETF (DVY) and it accounts for 1.94% of the fund’s total holdings. DVY also holds DTE Energy (DTE) at 1.75% of the total holdings and Dominion Resources (D) at 1.63% of the total holdings.


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