NextEra Energy Inc (NYSE: NEE) said on Friday that its Board of Directors had authorized a regular quarterly dividend of $0.515 per common share.
The latter represented about 10% increase from the prior-year comparable quarterly dividend.
The dividend will be paid on March 15th to shareholders of record as of the close of business on February 27th 2024, the company said.
NextEra Energy’s Board also authorized an updated dividend policy beyond 2024, under which dividends per share will increase roughly 10% annually through at least 2026, off a 2024 base.
“The board’s approval to continue to grow our dividends per share in excess of our expected adjusted earnings per share growth rate is a result of our success in executing on our industry-leading business strategy,” John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy Inc, said in a press release.
“With a 59% payout ratio at the end of 2023, 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. I believe we continue to offer a best-in-class total return potential, with above-average dividend growth and clear visibility to deliver financial results at or near the top end of our adjusted earnings per share expectations ranges in each year through 2026, while maintaining our strong balance sheet and credit ratings,” the CEO added.
Stock Performance
The shares of NextEra Energy Inc (NEE) closed 0.42% ($0.24) lower at $57.03 in New York on Friday, as they snapped a two-day streak of gains.
The company’s total market cap now stands at $117.009 billion.
The shares of NextEra Energy Inc (NEE) went down 27.34% in 2023, compared with a 24.23% gain for the benchmark index, S&P 500 (SPX).
The company’s shares have retreated 6.11% so far this year.
Analyst stock price forecast and recommendation
According to TipRanks, at least 8 out of 11 surveyed investment analysts had rated NextEra Energy Inc’s stock as “Buy”, while 2 – as “Hold”. The median price target on the stock stands at $69.60, which translates into a 22.04% upside compared to the closing price on Friday.
The high point of the analyst forecast range stands at $84.00.
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