NextEra Energy (NYSE:NEE) stock isn’t just your run-of-the-mill utilities company. It is a company dedicated to ethics and shareholder value. The dividend payouts are also a strong point in favor of the stock.
You don’t have to believe in sustainable energy as an investor. However, if you want steady growth, NEE stock belongs on your watch list.
NextEra’s Good Ethics
In the entire world, only nine companies within the energy and utilities sector were recognized by the Ethisphere Institute as one of the World’s Most Ethical Companies. Among the honorees is NextEra Energy. This is the 13th time the company has received this honor.
This comes on the heels of NextEra earnings another prestigious honor. The company was selected as the No. 1 electric and gas utilities company on Fortune’s 2020 Most Admired Companies list. It’s the 13th time in 14 years that NextEra has accomplished this. It looks like NextEra might have a lucky number on its side.
But in all seriousness, the Ethisphere Institute accolade is particularly meaningful for those interested in ethical investing. Ethisphere CEO Timothy Erblich specifically cited NextEra’s “commitment to integrity and high ethical standards while delivering clean and reliable energy to customers and growing shareholder value.”
NextEra CEO Jim Robo proudly reaffirmed the company’s commitment to “excellence, doing the right thing and treating people with respect, while helping build a sustainable energy era that is affordable, efficient and clean.”
Rewarding Shareholders
If you’re into dividend investing, NEE stock comes highly recommended. On Feb. 14, NextEra declared a dividend payout of $1.40 per share. That represents a 12% increase over the dividend payout from the same period of the previous year.
Not only that, but NextEra’s strong dividend growth should continue well into the future. The company’s board recently approved a policy indicating an annual dividend growth rate of 10%. If all goes according to plan, that should continue until at least 2022.
NextEra’s CEO explained how positive cash flow growth contributes to NextEra’s ability to pay such generous dividends:
“The board’s approval … is a result of our success in executing on our industry-leading business strategy. With a 60% payout ratio at the end of 2019, well below the peer average of approximately 65%, and the continued strength of the earnings and operating cash flow growth at NextEra Energy, we remain well-positioned to support the dividend policy going forward.”
Given that NextEra’s reported fourth-quarter revenues indicated a year-over-year increase of 4.5%, investors can expect the company to remain cash-flow positive and pay excellent dividends.
My Final Word on NEE Stock
NEE stock is the kind of asset that you can buy, hold and feel really good about. NextEra shares have garnered an A rating from me and it belongs on your watch list for steady returns and exemplary value.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
