NextEra: Bigger Dividend, Healthy Momentum, Bode Well (A.I. Too)


  • The Utilities sector performed poorly in Q1 but has seen a rebound in the past month, helped by gains in NextEra Energy (NEE).
  • NextEra, the biggest component of the Utilities sector ETF, has a modest valuation and I reiterate a buy rating.
  • NextEra Energy has strong earnings and dividend yield forecasts, though shares are not far from key resistance levels.
Abstract smart city concept


The rate-sensitive Utilities sector was among the bottom S&P 500 sector performers in Q1, but there was a snapback over the back half of the period. The group was up just 3.7% over the first three months of 2024, but on a 1-month basis, XLU

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