On Tuesday, shares of NextEra Energy Inc (NEE) yielded over 3% based on its quarterly dividend of $1.87, trading as low as $62.01. Historically, dividends contribute significantly to total stock market returns. For instance, an S&P 500 ETF (SPY) investment made on 12/31/1999 showed a loss in share value by 12/31/2012, but generated $25.98 in dividends, resulting in a 23.36% total return over that period. A sustainable yield above 3% from NEE appears attractive in this context.
NextEra Energy has consistently grown its dividend for over 20 years. Given its status as an S&P 500 company, analysts view the potential for continued dividend payments as reliant on the company’s profitability trends.
