Why NextEra Energy (NEE) is a Great Dividend Stock Right Now

Company Overview - NextEra Energy (NEE) is headquartered in Juno Beach and operates in the Utilities sector, specifically in Electric Power [3] - The stock has experienced a price change of 0.63% year-to-date [3] Dividend Information - NextEra Energy currently pays a dividend of $0.57 per share, resulting in a dividend yield of 3.14%, which is higher than the Utility - Electric Power industry's yield of 3.09% and the S&P 500's yield of 1.65% [3] - The annualized dividend of $2.27 represents a 10.2% increase from the previous year [4] - Over the last five years, NextEra Energy has increased its dividend five times, averaging an annual increase of 9.75% [4] - The current payout ratio is 60%, indicating that 60% of its trailing 12-month earnings per share (EPS) is distributed as dividends [4] Earnings Growth - NextEra Energy is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.67 per share, reflecting a year-over-year growth rate of 7% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - High-growth firms typically do not provide dividends, while established companies with stable profits are preferred for dividend investments [7] - NextEra Energy is positioned as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]