1. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 65
NextEra Energy, Inc. (NYSE:NEE) is engaged in the generation, transmission, distribution, and sale of electric power to both retail and wholesale customers in North America. The company utilizes wind, solar, nuclear, natural gas, and other clean energy sources for electricity generation. NextEra Energy, Inc. (NYSE:NEE) ranks 1st on our list of the best utility stocks. On February 16, the company declared a $0.515 per share quarterly dividend, a 10.2% increase from its prior dividend of $0.468. The dividend is payable on March 15, to shareholders on record as of February 27. The board approved an updated dividend policy projecting a 10% annual growth rate in dividends per share through at least 2026, based on a 2024 starting point of $2.06 per share.
According to Insider Monkey’s fourth quarter database, 65 hedge funds were bullish on NextEra Energy, Inc. (NYSE:NEE), compared to 58 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the leading stakeholder of the company, with 3.90 million shares worth $237.2 million.
ClearBridge All Cap Value Strategy made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2023 investor letter:
“Many businesses are threatened by a higher cost of capital, but one where reality has set in, and which also touches many other growth areas of the market, is the utility company NextEra Energy, Inc. (NYSE:NEE). Over the past few years, the company developed into a growth darling thanks to its strong track record in renewable energy development and tailwinds from the global energy transition and incentives in the Inflation Reduction Act. The problem for NextEra, and the transition broadly, is that this transformation is immensely capital intensive and many renewables projects offer lower returns on that capital. This requires high capital expenditures – often resulting in negative free cash flow – to meet the growth and financing needs of companies like NextEra. To help, the company leaned on financial engineering by using a publicly traded limited partnership called NextEra Energy Partners, providing further capacity for its parent to continue its development plans. NEP used layers of its own financial engineering to fund its own negative free cash flow and a large, growing dividend yield that we believe it could not sustain organically. Ultimately, the higher cost of debt from rising rates led NEP to lower its own growth ambitions, driving concerns about whether NextEra can execute on its extensive backlog. As a result, the stock has declined by approximately 30% year to date.”
Follow Nextera Energy Inc (NYSE:NEE)
Follow Nextera Energy Inc (NYSE:NEE)
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 15 Highest Quality Champagne Brands Under $300 and 10 Best Car Insurance in Massachusetts for 2024.
