Tuesday, February 27, 2024

Dividend Increase - NextEra Energy, Inc. (NEE)

 



Friday, February 16th the Board of Directors of NextEra Energy, Inc. (NEE) announced a quarterly dividend increase of from $0.4675 to $0.515 per share that’s payable March 15, 2024 to holders of record February 27, 2024. This represents a 10.16% increase over the last quarter dividend.


The board also approved an updated dividend policy beyond 2024, which is expected to translate to a growth rate in dividends per share of roughly 10% per year through at least 2026, off a 2024 base, which is expected to be $2.06 per share.


With current price $55.15 (yesterday's close), this raise brings their dividend yield to 3.74%.


NextEra Energy is a Dividend Champions with a 30 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 10.0, 10.1, 11.0 and 11.0 (DividendChampions.xls)



Since I own 70 shares of NEE, this will increase my portfolio's projected annual net dividend income by $9.91.


I was expecting an increase of about 5%, so the announcement was a very pleasant surprise.


This is the second dividend increase I've received from NextEra Energy since initiating a position in February 2022. During this period, the quarterly dividend has risen nicely from $0.425 to $0.515 or 21.2 percent.


This increase raises my yield on cost to 3.16%.



Summary of 2024 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long NEE


Thanks for stopping by!


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