NextEra Energy, Inc. (NEE): Can Climate Change Propel This Dividend Stock?

A move like that also bodes well for General Electric Company (NYSE:GE), a major provider of wind turbines. Just last month, the company revealed its latest and greatest 1.7 MW turbine model — and NextEra Energy, Inc. (NYSE:NEE) promptly snatched up 59 for a new wind farm. In its latest annual report, General Electric Company (NYSE:GE) cited increases in wind turbine sales as the primary reason for a 10% uptick in its Power & Water division sales.

While Atlantic Power Corp (NYSE:AT) has its own issues as a dividend stock, it, too, will benefit from Obama’s latest plans. The “growth by acquisition” corporation recently revealed big plans to head into renewables, and wind already accounts for almost one-fifth of its total capacity.

Source: Atlantic Power Deutsche Bank Leverage Financed Conference Presentation.

Can NextEra’s dividend grow?
NextEra’s dividend yield currently clocks in at 3.4%, a sizable 0.6 percentage points below the industry average. But that’s because the company has been pouring profits back into new projects, making the most of tax credits while they last.

Looking ahead, investors might not see major dividend yield growth in the next couple of years — but that’s because NextEra’s best value add is found in ramping up renewables. This dividend stock has earned its title, but it’s not sacrificing long-term shareholder value to tout the biggest yield around. If the president’s latest policies are any indicator, patient NextEra Energy, Inc. (NYSE:NEE) investors will continue to pull profits, dividend stock or not, for years to come.

The article Can Climate Change Propel This Dividend Stock? originally appeared on Fool.com and is written by Justin Loiseau.

Fool contributor Justin Loiseau owns shares of General Electric and uses electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool owns shares of General Electric.

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