Why NextEra Fell 4% While the Market Was Rallying in April

Shares of giant U.S. utility NextEra (NYSE: NEE) fell 4% in April according to data from S&P Global Market Intelligence. That's somewhat surprising given that the average utility, using Vanguard Utilities ETF as a proxy, was up 3%. The S&P 500 index, meanwhile, advanced an even more impressive 13%. Don't get too crazy trying to figure this one out; it's pretty simple.

NextEra operates two main businesses: regulated utilities in Florida and a large renewable power operation. Florida is a pretty good market in that its population is expanding. That means more customers and, with the utility on good terms with its regulators, a growing top line. The renewable power business, meanwhile, is one of the largest such operations in the world and sells power under long-term contracts to others. It's in a sweet spot today, as clean power is in high demand. NextEra also benefits from modest leverage and a low dividend payout ratio. Overall, it has been able to increase its dividend at a more rapid clip than most of its peers in a market sector that is specifically looked to for dividends. 

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Source Fool.com