Nextera Energy has grown its dividend at a CAGR of 10% over the past 20 years.
Since the public market went public in 1994, real estate revenue has increased 130 times.
Both companies should continue to increase their dividend effortlessly.
Many companies pay dividends. However, due to the durability of its cash flow and the strength of its financial position, some dividend stocks are more suitable for investors seeking income than others. These features allow them to pay attractive dividends that can grow steadily even during more challenging times.
Nextera Energy (NYSE: No) and Real estate income (NYSE:O) Yes two Such Dividend stocks. They have increased their dividends for 30 consecutive years, including three major economic downturns. Growth should continue future, Even if we have more economic turmoil. Therefore, they don't have to worry about it Income inventory Buy this May.
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Nextera Energy is done great Work on increasing dividends over the years. this Utilities Spending has increased for more than 30 consecutive years. It's already quite Brisk 10% compound annual rate In the past twenty years. This is more effective than normal S&P 500 (snpindex: ^gspc).
Some factors contributed to its strong dividend growth. The company's business is a Florida-based power company (FPL) and power generation and transmission platform (Nextera Energy Resources)), produce Very Stable income supported by government-regulated interest rate structures and long-term fixed interest rate contracts. This gives it a steady cash flow to pay profitable dividends (current yields are close to 3.5%, while the S&P 500 has a dividend of less than 1.5%) and invest in growing its business. Nextera also has a strong balance sheet, which provides it with additional financial flexibility.
Nextera's business also has built-in growth drivers. Electricity demand in Florida Rising As the population grows, sunlight is used to generate low-cost solar energy. Meanwhile, demand for renewable energy is surging, bringing strong growth opportunities to its energy resource segment.
Given the growing demand for electricity, especially from renewable sources, Nextera hopes to continue to grow at a healthy rate (at least at the high end of 2027 within its annual guidance range of 6% to 8%. Utilities growth rate and lower dividend payment ratios should continue dividend At least next year, it will grow by about 10% annually.
Real estate revenue has an amazing record of growing dividends. Real Estate Investment Trust (Real Estate Investment TrustSince its listing in 1994, its dividend has increased by 130 times. Now Dividend growth stripes for 110 consecutive quarters and 30 consecutive years. Over the past three decades, the company has grown its spending at a CAGR of 4.3%.
REIT Collection Very Stable rental income. It has a diverse portfolio of diversified properties (retail, industry, gaming, etc.) in the United States and Europe, by Long-term net rental. Net leases generate very stable cash flows as tenants pay all operating costs, including routine maintenance, real estate taxes and construction insurance.
Real estate income owns leased property world Leading companies, including 7-11,,,,, Home Depotand Walmart. It focuses on leasing properties for tenants in economically resilient industries that are relatively unaffected by e-commerce (91% of their annual base rent).
The low real estate income ratio of REIT allows it to retain a large amount of free cash flow to invest in new revenues to generate real estate (over $900 million last year). The company also has one of the highest credit ratings in the real estate investment trust sector, which provides additional financial flexibility to acquire income-generating commercial real estate.
The company's financial flexibility allows it to invest billions of dollars each year Enter new income-generating property. This helps support its steady growth over 5.5% - Sport dividend.
Nextera Energy and Realty Income salary is a dividend that investors can rely on. The two companies generate very stable cash flow, which allows them to pay lucrative dividends and invest in growing their businesses. These growth investments helped them Steady increase in dividends over the past few decades.
With a durable business and a strong balance sheet, they should be able to continue raising payments in the future. Therefore, investors seeking income can buy without hesitation this month.
Before purchasing Nextera Energy, consider the following:
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Matt Dilallo has a place in Home Depot, Nextera Energy and Realty Income. Motley Fool has a position and recommends Home Depot, Nextera Energy, Realty Income and Walmart. Motley Fool has a disclosure policy.
2 Not strong dividend stocks to buy the May revenue was originally published by Motley Fool