We recently released a list Buy 10 Cheap Quarterly Dividend Stocks Now. In this article, we will explore Nextera Energy, Inc. (NYSE:NEE) Position against other neglected dividend stocks.
In the current market environment, investors want to seek stable income to protect themselves from possible recessions. The ISM and S&P Global business survey highlights growing concerns about the impact of new tariffs, with the Standard & Poor’s Global Survey predicting annual GDP growth rate in the first quarter only about 1%. While most forecasts predict growth of 0.5%, some phenomenal models indicate the possibility of contraction. The market is particularly concerned about how the U.S. government will respond to the growing recession risks, especially its approach to tariffs and trade agreements.
Additionally, despite President Donald Trump's decision to suspend tariff increases in multiple countries, Americans are still worried about recession and rising inflation. Consumer sentiment fell 8% in April compared to last month, with a final reading of 52.2, according to a new survey by the University of Michigan. This level of emotion marks the fourth highest record dating back to 1952.
“While the deterioration of middle-income households this month is particularly strong, expectations for large populations across age, education, income and political affiliation worsen. Consumers believe that risks in multiple aspects of the economy are largely due to uncertainty surrounding trade policies and the potential for inflation.”
Analysts believe investors worried about a slowdown may want to consider investing in dividend stock funds, as these stocks performed relatively well during the recession. Companies that pay dividends usually generate enough excess cash flow to maintain payments year after year. Dividend plans are often seen as a strong sign of financial discipline, as companies committed to paying dividends are often reluctant to change their policies. According to Morningstar Report, during the recession that began in July 1981, March 2001 and December 2007, dividend-paying stocks performed better than the broader market, with stocks performing well in two periods. However, their performance dropped slightly during the brief recession of 1980, amid rising interest rates at the Federal Reserve to control high inflation in the 1970s.
In dividend investments, dividend growth stocks perform better than stocks with high yields. Morningstar report notes that dividend growth funds provide the most attractive long-term returns, as shown in the data shown. These funds not only provide the highest total returns, but also achieve the best balance of risk and return as measured by the Sharpe ratio. The report also notes that dividend growth strategies generally perform best during recessions. Except in 2001, dividend growth funds performed better than other dividend categories during the recent recession when their larger technology stocks became disadvantages.
Wind turbines whose blades rotate to produce clean renewable energy.
For this list, we screened dividend companies with strong dividend history and at least 1% output for dividend companies as of April 27. From this list, we selected dividend stocks with dividend stocks below 20 as of April 27. The actual return ratio of low prices indicates that they are trading below their essence. Stocks are ranked in descending order of their price-to-earnings ratio.
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As of April 27: 18.02
Nextera Energy, Inc. (NYSE:NEE) is a Florida-based renewable energy company that operates one of the largest electricity companies in the United States, Florida Power & Light (FPL), and owns Nextera Enerys, Nextera Enerys, one of the world's largest renewable energy platforms. These businesses generate consistent cash flow that the company uses to pay dividends and reinvest in expanding its business.
Nextera Energy, Inc. (NYSE:NEE) reported high yields in the first quarter of 2025. The company's revenue was $6.25 billion, showing a 9% increase in the same period last year. Its adjusted earnings per share grew nearly 9% compared to the same period last year, which is a strong growth in utility. It continues to benefit from the solid performance of FPL and its renewable energy platforms. FPL contributed $1.3 billion, or $0.64 per share, an increase of more than 12% over the previous year. The company remains focused on strategic capital investments to meet Florida's growing electricity demand while making electricity affordable.
Nextera Energy, Inc. (NYSE:NEE) has a strong cash position. The company ended the quarter with cash and cash equivalents of more than $2.4 billion. Its operating cash flow is US$2.77 billion. This cash position makes the company a strong dividend payer. Currently, as of April 27, it has provided a quarterly dividend of $0.5665 per share, with a dividend yield of 3.43%. NEE is one of the cheapest quarterly dividend stocks as the company's spending has been growing for 29 consecutive years.
Overall, Ni Ranked 10th Among our cheapest quarterly dividend stocks. Although we acknowledge the potential of NEE as an investment, our belief lies in the belief that certain undervalued dividend stocks have greater hope to offer higher returns and do so in a shorter time frame. If you are looking for an undervalued dividend stock that is more promising than NEE but earns 10 times annually and grows in double-digit earnings every year, check out our report Dirt cheap dividend stocks.
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Disclosure: None. This article was originally published in Inside monkey.