Nextera Energy is a unique mixture of utility and clean energy company that offers an attractive yield and fast -growing dividend.
Chevron is a financially strong integrated oil giant with attractive yields and businesses.
Enterprise Products Partners is a North American Midstream giant with high profitability.
10 stock we like better than Nextera Energy ›
When September begins, dividend investors looking for new opportunities should not be eliminated by a higher -level wider market. Of course, the S&P 500 arrow(Snigex: ^GSPC) There are almost all heights of time, but there are still some very attractive high capacity stock hiding under the surface.
Three of the most attractive currently in the energy sector could be Nextera energy(Nyse: No)Is it Chevron(NYSE: CVX)and Enterprise Products Partners(NYSE: EPD); That’s why.
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The S&P 500 index dividend yield is approximately 1.2%. The yield of Nextera Energy dividends is more than twice the same – about 3.1%. Meanwhile, the average utility yield is approximately 2.7%. Thus, while Nextera Energy’s yield may not be as high as some investors may like, it is still a very attractive harvest than the relevant benchmarks.
Still, a truly exciting story is the growth of dividends. Nextera dividends have increased by 10% annual clip over the last decade. This is useful for any company, but especially because the utility sector is known for its slow and steady growth. Nextera expects dividends to increase by 10% per year to not less than 2026. 6-8% of income growth, which supports the increase in dividends, is expected to last at least 2027. In other words, strong dividend growth is likely to continue above the current forecast.
Two things promote that growth. First of all, the main companies are regulated by electricity utility operations in Florida. This state is useful for many years from migration. More population means more customers and more demand. However, Nextera has a second business because it is also one of the largest solar and wind farms in the world. This division is a growth engine and, depending on the ongoing energy transition, it will probably remain the growth engine in the coming years. If you like growth and income stocks, your list should have a high -income Nextera Energy in September.
The integrated energy giant Chevron dividend yield is about 4.3%. The average yield of energy stocks is approximately 3.3%. Like Nextera, Chevron looks like a dividend stock with a relatively attractive harvest. This is surpassing the 4% income mark that many dividend investors use to find investment. So it can be more tempting than Nextera Energy.
It is added to the attraction that Chevron has increased its dividend for 38 consecutive years. Despite the fact that Chevron operates in the energy -promoted energy sector, where oil prices have a huge impact on financial results. Using an integrated model that provides the entire energy value circuit and focuses on a strong balance with a debt to 0.2, both helps Chevron maintain the growth of dividends. Basically, her business is resistant to typical industrial fluctuations.
But the real Linchpin is that the Chevron Business Foundation intensifies. First, after a long and hard effort, the company’s troubled acquisition was completed. It is useful for growth. And secondly, the company Venezuelan operations, which may be a bit of political headache, start to work again. This high -income and reliable energy business is finally operating again from the strength.
Master Limited Partnership (MLP) Enterprise Products Partners is 6.8%. And the distribution increased 27 consecutive years. This combination will probably be attractive to most dividend investors.
Enterprise business is designed to support its distribution from the beginning. It has an investment level rated balance. And its energy business is in a completely mid -stream where the feeploys model is used. Enterprise owns vital energy infrastructure assets, such as pipelines for which it takes fees for use. These charges are linked to volume rather than energy prices, so cash flows are quite reliable during the energy cycle.
By the way, there is one potential problem. Although Nextera is known for being a dividend growth hare, the company is known as a distribution growth turtle. Slow and stable distribution growth is likely to be expected, but given the noble initial income, it will probably not be disturbed by dividend investors seeking to maximize today’s income.
The S&P 500 index is the highest level of market image and often, which is determined by few large companies. There are always many attractive dividend stocks under the surface. Currently, Nextera, Chevron and Enterprise Products Partners can be the best. When you start September, you should probably spend time with each of these energy stocks.
Before buying Nextera Energy stock, consider this:
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Reuben Gregg Brewer has no position in any of the above shares. Motley fool is a position and recommends Chevron and Nextera Energy. Motley Fool recommends Enterprise Products Partners. The Motley fool has a disclosure policy.
