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NextEra Energy’s Dividends before Its Ex-Dividend Date

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Aug. 23 2018, Published 2:09 p.m. ET

NextEra Energy’s ex-dividend date

Renewables giant NextEra Energy (NEE) has declared a dividend of $1.11 per share for Q3 2018. It has an ex-dividend date of August 29 and will pay the dividend on September 17. For 2018, the utility is expected to pay annualized dividends of $4.44 per share, which represents a 13% growth from last year’s dividends. It’s the highest dividend among the top utilities.

NEE yld

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Dividend yield

NextEra Energy stock currently offers a dividend yield of 2.6%, which is the lowest among the top utilities. On average, the broader utilities (XLU) offer a yield of 3.3%. NextEra Energy’s yield traded at a significant discount compared to its peers in the past five years.

Its peers Southern Company (SO) and Duke Energy (DUK) have dividend yields of 5.2% and 4.6%, respectively.

Dividend growth

Despite the lower yield, NextEra Energy’s dividend profile looks attractive, mainly due to its dividend growth. In the last five years, it has increased its dividends per share more than 10% compounded annually. The Utilities Select Sector SPDR ETF (XLU) increased its dividends 4% compounded annually in the same period.

NextEra Energy managed superior dividend growth, driven by higher earnings growth. It increased its earnings per share more than 8% compounded annually over the past five years, which is almost double the industry average.

NextEra Energy is aiming for even higher dividend growth over the next few years. We’ll look at that in the next part.

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