NextEra Focuses On Clean Energy Sources

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NextEra Energy ( NEE ) will be presenting at an investment conference Tuesday with the happy coincidence that its stock trades just below an all-time high.

Moray Dewhurst, vice chairman and chief financial officer, is scheduled to speak at the Credit Suisse Energy Summit at noon Mountain Time. The conference is in Vail, Colo.

NextEra Energy operates through its two principal subsidiaries, Florida Power & Light and NextEra Energy Resources.

Florida Power & Light sells electricity to 4.6 million customers in Florida, making it the third largest regulated electric utility in the U.S. NextEra Energy Resources produces wholesale electricity from clean sources, such as natural gas, solar, wind and nuclear.

It has a generating capacity of 42,500 megawatts. Nearly 60% of its electricity comes from natural gas and 22% comes from nuclear through plants in Iowa, New Hampshire and Wisconsin. Fifteen percent comes from wind, but only 0.3% comes from solar.

First Solar ( FSLR ) plans to build a 250-megawatt solar power plant on 2,300 acres of mostly public land in Riverside County, Calif., for NextEra. Construction is scheduled to begin later this year and to be completed by 2016.

NextEra's stock had a positive reaction to the company's latest earnings report Jan. 28. Earnings dropped 8%. The company beat on revenue, but missed on earnings.

But the stock rose 2.2% that day as it broke out of a cup base. It's 2% above an 89.37 early buy point.

Like most utilities, it's a slow but steady grower. Analysts are forecasting 7% growth this year and 6% next. The five-year annualized growth rate is 5%. The five-year Earnings Stability Factor is 2 on a 0 to 99 scale where low numbers correspond to steady growth.

The quarterly dividend is 66 cents a share, up from 54 cents in 2000. That works out to a yield of 2.9%



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas

Referenced Stocks: NEE , FSLR

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