Growth & Dividends
.38/share dividend per quarter
6-8% growth each year
Renewable energy push makes NEE a must own!
UPDATE and context:
From Wall Street Breakfast: Earth Day
President Biden announced his latest steps against climate change today as he convened a virtual climate summit with 41 world leaders. He pledged to cut U.S. greenhouse gas emissions by at least in half by 2030, though the initial proposal will offer broad strokes rather than a detailed breakdown…
Bigger picture: The announcement builds on other climate policies Biden has proposed in his first 100 days in office, including a plan to integrate climate risk into the financial system… He’s also set to issue an executive order on climate disclosure within the capital markets, a move that could shift investments and allocations in the fossil-fuel and renewables sectors. “Suddenly people are going to be making evaluations considering long-term risk to the investment based on the climate crisis,” said U.S. climate envoy John Kerry.
The world is energy hungry. Everything from the smallest lifeform to humans require energy to function. Our brains require energy and our modern life of luxury/technology requires even more energy. Energy is life and life is energy.
But energy that is consumed by animals does not magically arrive in our lives. It takes effort and management to harness and deliver the energy we need. Which is a for profit exercise and product.
In addition to the pure need for energy to live our modern lives, we will need more and more energy from renewable sources. Billions of people around the globe want to raise their quality of life and standard of living. If the energy they consume develops negative externalities of pollution and climate disruption, then we may certainly all be doomed in the long run.
Enter stage right, Next Era Energy (Ticker NEE). NEE is the world’s largest producer of wind and solar energy. It currently produces over 46,000 Megawatts of power and has revenues over $18 Billion. It is now the 3rd
largest electric utility company in the US.
About NEE from their own mouth:
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns two electric companies in Florida: Florida Power & Light Company, which serves more than five million customer accounts in Florida and is the largest rate-regulated electric utility in the United States as measured by retail electricity produced and sold; and Gulf Power Company, which serves more than 460,000 customers in eight counties throughout northwest Florida. NextEra Energy also owns a competitive energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage
NEE is scheduled to return 10% annually over the next several years, and that may be on the low end of expect
ations. The bottomline is that this company is a leader in clean energy production on a massive scale, and this will be highly desirable over the next several decades and beyond.