NextEra Energy, Inc. (NEE) is one of the largest electric utilities in the United States and is the parent company of Florida Power & Light (FP&L). The company has been in the news recently due to a dramatic rate increase proposal by FP&L, which has raised concerns among many of its customers. Despite the controversy, NextEra is still a strong investment opportunity. Here’s why investors should consider buying NEE stock.
First, NextEra has a strong financial position. The company has a strong balance sheet with a debt-to-equity ratio of 0.5 and a return on equity of 19.4%. This indicates that the company is well-positioned to handle any financial issues that arise from the FP&L rate increase. In addition, NextEra has a strong dividend yield of 3.3%, which is attractive for income investors.
Second, NextEra has a solid growth strategy. The company is focused on expanding its renewable energy portfolio, which has been a major driver of its growth over the past few years. In addition, NextEra has been investing in new technologies such as smart grid and energy storage to improve its operations. This strategy has enabled the company to remain competitive in a rapidly changing industry.
Finally, NextEra has a strong track record of delivering value to shareholders. The company has consistently increased its dividend over the past decade and has also delivered strong total returns over the same period. This indicates that NextEra is a reliable investment that can be counted on to deliver returns over the long-term.
Overall, NextEra is a strong investment opportunity despite the controversy surrounding FP&L. The company has a strong financial position, a solid growth strategy, and a track record of delivering value to shareholders. For these reasons, investors should consider buying NEE stock.