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10 Reasons to Buy and Hold This High-Yield Utility Stock Forever
The Motley Fool· 2025-07-12 09:00
Core Viewpoint - NextEra Energy is positioned as an attractive investment in the utility sector, combining reliable dividend growth with opportunities in clean energy [1] Group 1: Market Position and Growth - NextEra Energy operates primarily through Florida Power & Light, benefiting from steady growth due to population migration in Florida [2] - The company has established itself as one of the largest providers of solar and wind power, aligning with the global shift towards cleaner energy sources [4] - NextEra has a significant pipeline of projects, with 28 gigawatts currently underway and an additional 300 gigawatts of potential opportunities, indicating long-term growth prospects in clean energy [9] Group 2: Dividend Growth and Financial Health - NextEra Energy has achieved a remarkable 10% annualized dividend growth over the past decade, appealing to dividend growth investors [5] - The company has a 31-year history of increasing dividends, providing a reliable income stream for conservative investors [6] - The current dividend yield stands at 3.2%, above the utility sector average of 2.8%, making it an attractive option for income investors [8] - Management forecasts continued dividend growth of 10% for 2025 and 2026, supported by expected adjusted earnings growth of 6% to 8% [10] - NextEra maintains a solid financial foundation with an investment-grade rated balance sheet and a reasonable dividend payout ratio of 66%, allowing for continued growth and resilience [11][12] Group 3: Demand and Market Trends - Overall energy demand in NextEra's markets is projected to increase by 55% from 2020 to 2040, supporting both clean energy initiatives and regulated operations [13] - The current political climate has created a buying opportunity, as NextEra's share price has been negatively impacted, leading to attractive yield levels [14]
3 Dirt-Cheap Value Stocks to Invest $1,000 in This July
The Motley Fool· 2025-07-11 10:15
With the major stock market indexes hovering around all-time highs, there aren't as many dirt-cheap value stocks hiding in plain sight. But there are plenty of opportunities if you know where to look.Utilities, airlines, and stodgy industrial companies won't light up a growth investor's radar. However, they can be exactly what dividend seekers are looking for to boost their passive income stream.Here's why these three Motley Fool contributors think NextEra Energy (NEE 1.39%), United Airlines (UAL 14.33%), a ...