Is NextEra Energy Inc (NEE) a Good Dividend Stock?

By Issac Deleon
June 18, 2026
Featured Tickers:
NEE

In this article, we dive into the dividend history of NEE over the last five years as well as its overall yield and payout dates.

Finding the right dividend stocks, such as NEE, can help investors generate income, reduce overall portfolio risk, make use of tax advantages and expand purchasing power through dividend reinvestment programs.

Read on to learn about NextEra Energy, Inc.’s dividends as well as how it grades based on key metrics concerning dividend valuation, growth and strength to see whether this stock meets your investment needs.

NextEra Energy, Inc.’s Dividend Yield

NextEra Energy, Inc. has been paying out quarterly dividends to its shareholders since March 15, 2016.

As of June 18, 2026, NextEra Energy, Inc. had a relative dividend yield of 2.9% compared to the Electric Utilities industry median of 3.0%. NextEra Energy, Inc.’s dividend yield was 3.0% last year.

Since March 15, 2016, NextEra Energy, Inc. has paid out quarterly dividends ranging from $0.22 to $0.62 per share. Over the past five years, NextEra Energy, Inc.’s dividend yield has averaged 2.5% per year.

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NextEra Energy, Inc.’s Dividend History

Evaluating the dividend history of NextEra Energy, Inc. NEE can help investors understand how often the company pays dividends, the reliability of the payout and long-term dividend growth trends.

AAII typically presents the last five years of data. Investors can review NextEra Energy, Inc.’s dividend history through its dividend yield and the growth rate of its dividend. Its average dividend yield over the past five years is 2.5%, and its compound annual dividend per share growth rate over the last five years is 10.1%. You can compare these percentages to current figures and against sector and industry peers.

Analyzing NextEra Energy, Inc.’s dividend history is a good first step for assessing payment sustainability. However, researching dividends requires more than simply looking at the company’s dividend yield and growth. Other financial metrics play an important role for investment decisions, too.

About NextEra Energy, Inc.’s (NEE) Dividend Grades

AAII created the Dividend Investing Grader, a screening and strategy tool that condenses data in an actionable and customizable way suitable for investors of all knowledge levels, to help subscribers consolidate and understand large amounts of inaccessible data.

Our proprietary Dividend Grader assigns stocks an intuitive A–F grade for three “pillars”: dividend valuation, dividend growth and dividend strength. The DI Grader ranks dividend-paying stocks such as NextEra Energy, Inc. based on the three pillars, providing investors with useful metrics for judging the attractiveness of a stock based on its dividend. Continue reading for a closer look at NextEra Energy, Inc.’s dividend valuation, growth and strength grades.

Learn more about AAII’s Dividend Investing Strategy and Model Portfolio.

NextEra Energy, Inc.’s Dividend Valuation

Dividend Valuation Grade → B (Score: 36, Value)

Dividend valuation is a key component in seeking attractive dividend-paying stocks. Stock prices tend to fluctuate between high and low valuation levels, and these relationships can be used to determine a stock’s value range.

An important valuation metric used in the Dividend Grader is the relative dividend yield. NextEra Energy, Inc.’s dividend yield can be used to calculate a valuation estimate, indicating if this stock is expensive relative to its historical norm.

The NextEra Energy, Inc.’s Dividend Valuation Score is 36, which translates into a Dividend Valuation Grade of B and is considered Value.

The Dividend Valuation Score is the percentile rank of the average of the percentile ranks of the relative dividend yield and shareholder yield (buyback yield plus dividend yield). The score is not variable, meaning it must consider both relative dividend yield and shareholder yield to be valid. To be assigned a Dividend Valuation Score, stocks must have a valid (non-null) and corresponding ranking for both of the variables.

Stocks with a value score from 0 to 20 are considered deep value, those with a score between 21 and 40 are considered value and so on.

NextEra Energy, Inc.’s Dividend Growth

Dividend Growth Grade → B (Score: 70, Strong)

Dividend growth is another key factor for the attractiveness of a dividend-paying stock. AAII looks at overall dividend growth for the most recent 12-month period as well as the five-year average annualized dividend growth rate. The Dividend Growth Grade also takes into account cash flow from operations and return on assets.

NextEra Energy, Inc.’s Dividend Growth Score is 70, which translates into a Dividend Growth Grade of B and is considered Strong.

AAII assigns NextEra Energy, Inc. NEE stock a Dividend Growth Score by adhering to a rule that states it must have a valid (non-null) percentage and corresponding ranking for at least three of the four growth components, including growth in cash flow from operations over the most recent 12-month period, return on assets (ROA) relative to the sector median, dividend growth over the most recent 12-month period as well as five-year average annualized dividend growth rate.

NextEra Energy, Inc.’s Dividend Strength

Dividend Strength Grade → C (Score: 47, Average)

Underlying metrics, such as a company’s ability to generate cash flow, pay obligations and return capital to shareholders, play a key role in the overall financial strength of a company. A company’s leverage ratios, cash flows and payout ratios (earnings and cash flow) can also provide useful insights.

Two important metrics that determine NextEra Energy, Inc. stock’s Dividend Strength Score and Grade are based on are:

  • Earnings payout ratio relative to its sector median
  • Dividend sustainability score

Investors should look at these metrics to understand if a company is generating enough cash to cover its dividends year to year. If it is not, the dividend payment may not be sustainable.

NextEra Energy, Inc.’s Dividend Strength Score is 47, which translates into a Dividend Strength Grade of C and is considered Average.

It’s important to understand what goes into calculating the NextEra Energy, Inc. NEE dividend strength score and grade. There is little point in seeking out dividend-paying stocks like NextEra Energy, Inc. unless the dividend is secure and expected to grow. Many companies pay dividends, but those that can sustain their dividend payments are more desirable to income investors.

NextEra Energy, Inc.’s (NEE) Dividends: Bottom Line

Overall, the NextEra Energy, Inc.’s current dividend yield is 2.9%, which ranks in the 30th percentile among all U.S.-listed dividend-paying stocks. Its compound average dividend growth rate is 10.1% over the last five years. NextEra Energy, Inc. has a Dividend Valuation Grade of B, a Dividend Growth Grade of B and a Dividend Strength Grade of C.

If you’re considering adding NextEra Energy, Inc. to your portfolio, make sure to do your own research and due diligence.

AAII’s Dividend Investing strategy and portfolio identify the best dividend investment opportunities by focusing on a select universe of well-financed companies that have the following characteristics:

  • A long history of earnings and dividend growth
  • Positive free cash flow
  • Low to reasonable valuations
  • A solid outlook for both price appreciation and higher dividends in the future

At AAII, we are intent on providing individual investors with the information, resources and tools they need to be confident in their financial decisions. So, before you invest in NextEra Energy, Inc., ensure you have the right resources to conduct your analysis.

Our Dividend Investing subscription gives subscribers key screens and strategies to learn how to find stocks that fit your portfolio. Dividend Investing also gives members a real-world model portfolio with in-depth, time-tested rules that can help you outperform the market and receive quarterly dividends. Learn more and subscribe to AAII’s Dividend Investing today.

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