NextEra Energy Managed Higher Dividend Growth



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.


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.

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