Basic Needs Portfolio Selection: NextEra Energy, Inc. (NEE)

NextEra Energy, Inc. (NYSE:NEE)’s robust renewable energy portfolio has a few notably positive impacts. First, it’s a green source of power, which doesn’t harm the environment. Second, renewable energy costs are falling, meaning that consumers are likely to benefit with lower electric costs over the long run. Finally, the Obama administration has made it quite clear that one of its primary focuses is to reduce America’s dependence on foreign oil. One way of achieving that is by better utilizing renewable energies such as what NextEra has devoted the majority of its portfolio too. If subsidies continue for renewable energy projects, then NextEra is going to be sitting in better shape than many of its peers.

Another very important factor that makes NextEra Energy, Inc. (NYSE:NEE) attractive is its dividend, which has been raised for 18 consecutive years. NextEra hasn’t been shy about its plans to pursue a targeted payout ratio of 55% which has led to big gains for shareholders, as the following chart shows.

Source: Nasdaq.com.

All told, NextEra shareholders have witnessed their payouts jump by an average of 6.3% over the previous 18 years and currently are receiving a steady yield of 3.4%. While a bit lower than some of its peers, this is still considerably higher than the S&P 500 average yield which is closer to 2%.

Stay tuned next week, when I’ll unveil the fourth selection to the Basic Needs Portfolio.

The article Basic Needs Portfolio Selection: NextEra Energy originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, Intel and Waste Management, Inc. (NYSE:WM). It also recommends Exelon Corporation (NYSE:EXC).

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