uploads/2017/08/2-37.jpg

NextEra Energy Managed Higher Dividend Growth

By

Updated

NextEra Energy’s dividend growth

NextEra Energy (NEE), the largest component of the S&P 500 Utilities Index (XLU), had one of the highest dividend growths in recent years. In the last ten years, it raised its per share dividends more than 8% compounded annually. NextEra Energy’s higher dividend growth was largely driven by its superior earnings growth in the last few years. It’s also one of the fastest-growing utilities with its per share earnings growing more than 8% compounded annually in the last ten years.

2

Importantly, NextEra Energy continues to see strong dividend growth in the next few years. Management expects its per share dividend to grow 12%–14% compounded annually through at least 2018.

NextEra Energy’s expected dividend growth is noteworthy because its peers such as Southern Company (SO) and Duke Energy (DUK) expect their dividends to grow 4%–6% for the next few years.

To learn about how NextEra Energy manages higher earnings growth, read Why NextEra Energy Continues to Impress.

Article continues below advertisement
Advertisement

More From Market Realist