2024-04-25 07:30:00 ET
Summary
- Empirical evidence suggests that reinvested dividends are the biggest driver of long-term total returns.
- NextEra Energy's revenue came in below the analyst consensus for the first quarter, while adjusted diluted EPS outperformed expectations.
- The Dividend Aristocrat's 3%+ payout is well-covered by earnings and should keep growing at a healthy rate.
- Based on the dividend discount model and my fair value P/E multiple, NEE could be 15% discounted.
- The stock could be set up for double-digit annual total returns over the next few years.
In my view, the importance of dividends to my investing strategy can't be overstated. Dividend growth investing is the core of my investing strategy for many reasons.
The growing stream of passive income that my portfolio provides to me is one thing that I especially appreciate. Another similar reason that I am a devoted dividend investor is because of just how much of total returns have been powered by reinvested dividends over the long haul....
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For further details see:
NextEra Energy: Power Total Returns With This Dividend Aristocrat