Looking for utility stocks with great dividend-growth characteristics? If so, take a look at NextEra Energy and consider adding it to your portfolio. Utilities are stalwarts of many investors’ portfolios because their main product, energy, is needed and always in demand. Additionally they tend to pay above average dividends, which most investors appreciate.
A recent article by Bob Ciura of SureDividend, which appeared on the Seeking Alpha website, provided a very positive outlook for investors in NextEra. Here’s what Mt. Ciura said:
- Utilities and Dividend Growth
Conservative investors love electric utilities because they tend to pay high dividends, often 4 percent or greater. But most of them are not known for dividend growth, i.e. a dividend that steadily increases year after year. NextEra has been increasing its dividend payout for the last ten years and is poised to continue this remarkable track record.
- The NextEra Advantage
NextEra is a utility that provides electricity through its two operating companies: Florida Power & Light, and NextEra Energy Resources. Importantly, NExtEra has turned away from coal-fired plans, instead investing heavily in green solar and wind energy sources. Indeed, the firm claims to be the world’s biggest generator of wind and solar energy.
- NextEra Growth Prospects
Solid forward growth is projected for NextEra: It is in the enviable position that its electric demand keeps rising while its costs have been decreasing. The company has a backlog of new construction projects, the largest project back-inventory in any four-year period in NextEra’s history. It’s business is booming.
- Dividend Analysis
NextEra’s dividend is quite secure. The utility has a credit rating of ‘A-‘ from the Standard & Poor’s rating agency. NextEra is planning ongoing double-digit dividend increases for at least the next two years.
So, if you are looking for a utility with great business characteristics and ongoing dividend growth, take a good look at NextEra.