NextEra Energy is selling off today, September 27th with a couple of news items in the headlines. Source: Factset Database, September 27, 2023 First, NextEra plans to sell Florida City Gas to Chesapeake Utilities Corporation (CPK) for $923 million in cash. NextEra will realize a gain on sale that should be immediately accretive to earnings and reduces debt loads by $145 million. Florida City Gas was an asset included in the Florida Gulf Power deal from Southern Company back in 2019. from This deal is expected to close over the [...]

Institutional investors have invested in NextEra Energy stock (NYSE:NEE) over the last decade because of the low volatility investors get from utilities, the population growth rate in Florida, and Next Era’s consistent dividend growth rate of around 10% per year. Unfortunately, that can also mean that share prices of Next Era got expensive as companies which offer low volatility and consistent growth were bid up by investors. For example, Next Era’s dividend yield (blue below) was consistently above 3-3.5% in the recovery following the financial crisis. But that yield steadily [...]