NextEra Energy focuses on the generation, transmission, distribution, and sale of renewable energy in the U.S. and Canada. On May 23, President and Chief Executive Officer Jim Robo announced that NextEra Energy's principal rate-regulated utility subsidiary invested more than $4 billion into strengthening a customer value proposition by providing high reliability, award-winning customer service with the lowest typical residential customer bill in Florida.
NextEra Energy Resources, the company's competitive energy business, added roughly 1,500 MW of new U.S. wind projects in 2012, after completing the largest wind program. NextEra Energy's nearly $7 billion in investments in the state also includes more than 5,400 megawatts of generating capacity and the Texas-based retail electricity provider Gexa, serving more than 200,000 residential and industrial customers in 14 states and the District of Columbia.
NextEra Energy presents great earnings and dividends. The company offers a 3.54% dividend, coupled with a consistent history of solid dividend growth. Analysts expect NextEra Energy to earn $4.95 per share in 2013 compared to $4.54 per share in 2012. However, over the past decade the dividend payout ratio has been falling from 58% in 2002 to 48% in 2011. NextEra Energy has the lowest dividend payout ratio, a good sign for a utility company, since this ratio provides an opportunity for consistent dividend growth with minimum impact of short-term fluctuations in earnings.For NextEra Energy’s management, there are limited opportunities in the future profitability path of this company. The expected CapEx for both future wind and solar projects is above $3 billion for each through 2014. The company would not be doing this if it sees any huge risks to the company's profitability from these projects. Nevertheless, NextEra Energy is well hedged through 2014.