Dividend Aristocrats Spotlight 05

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Dividend Aristocrats Spotlight: NextEra Energy

Dividend Aristocrats Spotlight | August 16, 2023
STRATEGY Dividend Growers
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Established as Florida Power & Light Company in 1925, NextEra Energy (NYSE: NEE) adopted its current name in 2010 to reflect its commitment to the environment and renewable energy. Today, NextEra Energy is not only the world’s largest utility company, but also a leading clean energy company.

The past decade has witnessed an important shift in the market for renewable energy. Wind and solar have emerged as more cost-effective alternatives to fossil fuels, and their affordability continues to improve.[1] NextEra Energy has invested over $160 billion into renewables since 2010, becoming the world’s largest wind and solar energy generator.[2] The company is also a leader in energy storage, which enables the broader adoption of renewable energy by ensuring a more stable grid.

NextEra Energy remains focused on both its balance sheet strength and investing for the future by maintaining a long-term debt-to-capital ratio of around 50%.[3] Even as the company positions itself for the clean energy revolution, NextEra Energy has consistently returned value to its shareholders through increasing dividends. In fact, the company expects double-digit annual dividend growth through at least 2024,[4] rewarding investors for participating in the transition to a sustainable energy future.

Graph shows NextEra Energy vs. S&P 500 Utilities and S&P 500 growth of $10,00 since 1996. NextEra Energy has increased to just over $300,000 as of 2023, S&P 500 has reached $100,000, and S&P 500 Utilities is around $75,000.

Source: Bloomberg, 12/31/96-6/30/23. Past performance does not guarantee future results. Indexes are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

NextEra Energy is a great example of what it means to be a Dividend Aristocrat. Explore all the S&P 500 Dividend Aristocrats Index companies with the ProShares S&P 500 Dividend Aristocrats ETF (NOBL).

 

[1] Source: International Renewable Energy Agency. Levelized Cost of Energy, 2010–2021.

[2] Source: NextEra Energy Investor Relations, Cash Flow Quality and Leverage.

[3] Source: Bloomberg. TTM data, 2014–2022.

[4] Source: NextEra Energy Investor Relations, 4th Quarter 2022 Earnings Release.

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S&P 500 Dividend Aristocrats ETF

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Holdings are subject to change. As of 8/7/23, NOBL included a 1.38% allocation to NextEra Energy.

This is not intended to be investment advice. Any forward-looking statements herein are based on expectations of ProShare Advisors LLC at this time.

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