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NextEra EnergyNEEBUYOct 13, 2020
Stockchase DiscoverStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Challenging year due to higher interest rates. Florida Power & Light has been its reliable utility cash cow. Proceeds from that have been invested in solar and wind, and they're the largest provider in the US. He's been adding. Long term, moving in the right direction. Yield is 3.3%.
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Premium contentNextEra Energy, Inc. is an American energy company with about 58 GW of generating capacity, revenues of over $18 billion in 2020, and about 14,900 employees throughout the US and Canada. It is the largest electric utility holding company by market capitalization. Social media mentions are up 100% in the past 24h.
NEE has had a tough year, with rising rates, and is now down 19% YTD. But it remains one of our preferred US large-cap utility stocks. It has shown very steady earnings growth, and cash flow is secure and solid. The yield is 2.8% and it has a decent record of raising its dividend. The last quarter was fine, and the company expects a three-year growth rate (compounded) of between 5% and 7%, which is higher than peers. We think it looks good overall.
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NEE is the biggest American utility, much bigger than AQN. NEE has a huge business in electricity (Florida) which is much more stable than AQN's green energy. NEE does have a renewables business though in the US and Canada, and this holds promise. The grid will continue to get greener over time. A consistent earner and has been meeting or beating quarters much more consistently than AQN.
Brian MaddenHas been choppy. Utilities are sensitive to interest rates and pressured valuation. But they benefit from population growth in Florida where they operate electricity. Their other business is renewable energy Solar and wind), so they benefit from Washington's green energy incentives. A third tailwind is ongoing ESG investing. Fundamentals remain sound.
Brian Madden
Brian Madden
David Burrows
Allan Tong’s Discover Picks NEE stock boasts a one-year return of 32% and almost 200% over five years. Revenue growth year-over-year stands at nearly 15%, double the sector (in the U.S). NextEra trades at a 34x PE and pays a 1.85% dividend. The stock has climbed 25% year-to-date and it currently sailing at all-time highs. In fact, it has popped 10% in the past two weeks, beyond $300, as the election campaign heats up. Read NEE Stock and BABA Stock: 3 Savvy Election-proof Stocks for our full analysis.