We received $81.22 ( 82.6246 shares x 98.3 cents) from NextEra Energy (NEE). The firm has increased its dividend per share this quarter by 11.3 cents. Since Nov 2016, the stock price has increased by +17% as 2016 earnings per share is up by +3% to US$6.25 from US$6.01 in 2015. NextEra Energy expects earnings to grow at a compound annual growth rate of 6% to 8% per year until 2020. The company also stated that adjusted earnings guidance for 2017 is in the range of $6.35 to $6.85 while for 2018, it shall be in the range of $6.80 to $7.30.
The dividend yield is +2.6%. Due to the increasing stock price, the dividend yield has a downward trend and is near to a 5yr low. The stock price is expected to continue its bullish rally throughout 2017 due to the positive growth outlook, thus, we expect that dividend yield will continue its downward trajectory.
The dividend payout ratio is 0.56. The dividend payout ratio has an upward trend in 2016 because dividends are higher than company earnings. Earnings without NRI only grew by 3% YoY in 2016.
The dividend growth rate from 3yr to 10yr period is between +8.6% to +9.6%. As the company foresees positive growth in the future, the recent dividend grew by +13%, a higher growth rate as compared to the other periods.
Based on our analysis, we are expecting that NextExtra Energy will be continuously paying dividends to investors as positive growth is foreseen in 2017 and we expect that the growth rate will still be a double digit number.