How Much Will NextEra Energy Pay Out in Dividends This Year?

After hiking its payout every year for nearly three decades, NextEra Energy (NEE 0.53%) is clearly committed to rewarding shareholders. In addition to the lengthy dividend history, the stock's allure as a passive income play is demonstrated in its forward dividend yield of 2.9%. Even more attractive for some is the fact that the electric utility has made a concerted effort to expand its solar and wind power assets, making it a strong consideration for renewable energy investors looking to power their passive income.

But successful investors know that it's important to dig into a company's financials before clicking the buy button on its stock. Let's see how much NextEra Energy expects to pay out in dividends in 2024 to better assess the company's financial position.

NextEra Energy is charged up about growing its payout

NextEra Energy has raised its dividend for 27 consecutive years, but it's the past decade that warrants special attention. From 2013, when it paid $0.66 per share, through 2023, when it returned $1.87 per share, NextEra Energy has raised its dividend at a compound annual growth rate (CAGR) of 11%.

So far in each quarter of 2024, NextEra Energy has paid dividends of $0.515 per share, and it expects to make the same payments in the remaining quarters of the year. Should it accomplish this, it will mean that NextEra Energy will return about $4.23 billion in dividends to shareholders in 2024. To put this in perspective, NextEra Energy returned $3.78 billion and $3.35 billion to shareholders in 2023 and 2022, respectively.

The same dedication to growing the dividend will likely continue. In February, NextEra Energy announced a dividend policy that entails raising the dividend about 10% annually through 2026, based on the $2.06 it expects to pay out in 2024.

Should NextEra Energy power your portfolio?

With NextEra Energy stock trading at a price-to-operating cash flow multiple of 11, today seems like a great time to dig further into this renewable energy dividend powerhouse to see if it is, in fact, a smart buy.