SO, NEE, DUK: A Look at Utilities Dividends in the Last 3 Years



Southern Company: Dividend per share

Southern Company (SO) paid annual dividends of $2.22 per share in 2016. Among its peers, NextEra Energy (NEE) paid $3.48 per share and Duke Energy (DUK) paid dividends of $3.36 per share in 2016.

Southern Company’s management expects the company’s dividend growth to follow its ~5% earnings growth in the long term.

SO dps

Compared to the 4.5% yield of Southern Company, NextEra Energy and Duke’s yields are near 3% and 4.5%, respectively.

Among these three energy companies, NextEra Energy’s dividends have grown remarkably in the past few years, fueled by earnings growth. According to analysts’ estimates, NextEra’s dividends are expected to rise more than 10% due to its strong earnings growth for the next few years.

Duke Energy’s dividends are expected to grow 4% going forward, which would be in line with the industry average.

Article continues below advertisement

More From Market Realist