Is NextEra Energy a Great Dividend Stock?
In 2001, NextEra Energy (NYSE: NEE) sported a market valuation of just $10 billion, making it the 30th most-valuable publicly traded utility on the planet. Today, the business is valued at $117 billion, making it the world's largest publicly traded utility. The second-most-valuable utility sits at a market cap of less than $80 billion.
The company's enviable growth trajectory was fueled by aggressive bets on onshore wind-power infrastructure in favorable locations, which created a massive stream of cash flow thanks to low-cost production and federal subsidies. That also turned NextEra Energy into a solid dividend stock. In fact, the business paid out $2.1 billion in common stock dividends in 2018. Shares currently sport an annual dividend yield of 2.1%.
But the production tax credit (PTC) will be phased out for wind power projects that begin construction after the last day of 2020, while a recently acquired Florida utility requires sizable investments to improve its operations. Can NextEra Energy maintain its status as a great dividend stock?
Source Fool.com
