In the realm of dividend investing, few stocks shine as bright as NextEra Energy (NYSE:NEE). Based on its consistent dividend growth and remarkable financial performance, NextEra has earned its place among the Dividend Aristocrat stocks. These stocks have a history of consistently increasing dividends for at least 25 consecutive years.
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NEE has met this requirement by raising dividends for the past 27 years, which makes the stock a reliable income source for investors. Furthermore, Wall Street analysts are bullish on NextEra stock and anticipate the stock’s price to increase by about 31% in the next 12 months.
Here’s What Makes NEE Stock Worth Considering
NextEra belongs to the utility sector, which is known for its stability. Also, the company’s regulated utility, Florida Power & Light (FPL), offers a predictable source of revenue. Moreover, a strong balance sheet supports investment in infrastructure and growth projects.
NEE released its better-than-expected third-quarter results on October 24. Additionally, both earnings and revenues increased on a year-over-year basis. The clean energy company benefited from solid growth in its renewables and storage origination businesses.
Further, the company reiterated its commitment to increase annual dividends by 10% through at least 2024 compared to 2022. With a dividend yield of 3.5%, NextEra could remain appealing to investors.
It is worth mentioning that the Q3 results were received well by analysts, as three of them reiterated a Buy rating on NEE.
Among the bullish analysts, James Thalacker from BMO Capital maintained a Buy rating on NEE stock with a $71 price target. The analyst’s optimistic stance is based on the company’s strong performance, which helped address investor concerns relating to interest rate exposure and equity requirements. The analyst also highlighted a promising outlook for renewable projects.
What is the Future of NEE Stock?
Overall, NextEra stock commands a Strong Buy consensus rating based on 13 Buy and three Hold recommendations. Also, the average NEE stock price target of $73.87 implies a 30.8% upside potential from current levels.
Importantly, NEE stock has a “Perfect 10” Smart Score on TipRanks, which implies that the stock has the potential to beat the benchmark index.
Ending Thoughts
NextEra’s presence in the utility sector, along with its leadership in renewable energy, positions it well for the future. In addition, NextEra’s track record and commitment to enhance shareholders’ value make it a compelling choice for those seeking both income and stability in their investment portfolio.
