The company currently trades with a market cap of more than $32 billion, which has grown relatively consistently during the past decade from around $5 billion. Learn more about Motley Fool Stock Advisor.Īs its name suggests, American Water Works is a water utility company, and it’s the largest publicly traded company in the United States that provides such services, according to IG. If you would have invested in Netflix when they first recommended the company, your investment would be up more than 21,000%. Their Motley Fool Stock Advisor recommendations have increased 563% compared to just 131.1% for the S&P 500.
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TECH UTILITIES SAFE PRO
Pro tip: David and Tom Gardener are two of the best stock pickers. All in all, NEE is one of the best stocks in the space.
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electric utilities market, more growth is likely ahead. Moreover, with the company’s leadership in the clean energy space and overall dominance in the U.S. The COVID-19 pandemic has been painful for everyone, but it has proven that the company has the ability to grow even in adverse market conditions. Regardless of the fact that NextEra Energy isn’t the best dividend paying stock in the utility sector, it is clearly one of the best investment opportunities in the space. The stock’s growth has led to a dividend yield of just 1.86% in an industry with average dividends of 3.7% according to. That’s a fact that bodes well with investors considering the shift to clean energy and the fact that a proponent of this shift, Joe Biden, recently won the 2020 presidential election.Īlthough the company saw compelling growth in its stock throughout the first three quarters of 2020, dividend increases have lagged behind stock price increases, leading to a relatively low dividend yield among utility stocks.
TECH UTILITIES SAFE GENERATOR
As a result of the company’s early adoption and strong investments in the renewables space, it has become the largest generator of solar and wind energy in the world. nuclear power market, it’s also a massive player in the U.S. While NextEra plays an integral role in the U.S. The company also went from losses to profit, moving from a loss of $3.39 per share in the first quarter of last year to a profit of $2.66 per share in the first quarter of this year. However, the company is clearly making a strong recovery, with year-over-year revenue growth sitting at 16.6%. In the most recent quarter, earnings came in at $0.13 per share, which isn’t bad when you consider that just last year, NEE produced losses as it struggled through COVID-19-related headwinds. This dominance has led to a strong performance leading up to and during the coronavirus pandemic, allowing the company to deliver strong results quarter after quarter. Being the largest metered electric utilities company in the United States, you or someone you know is likely receiving services from the company or one of its many subsidiaries. The company has a few competitive advantages to speak of.įirst and foremost, NextEra Energy’s dominance as America’s electricity provider is hard to brush off. Unlike its peers, it made a strong recovery throughout 2020 before gains tapered off through the first half of 2021, lending a hand to the undervaluation argument. Like many in the utilities sector, NextEra Energy stock saw high volatility and painful declines as the COVID-19 pandemic began to spread around the world. In fact, by providing electric utilities across the country, the company has grown to boast a market capitalization of more than $158 billion. Nonetheless, Florida isn’t the only region where you’ll find the company’s utility services. The company’s claim to fame is its Florida subsidiary, Florida Power & Light, or FPL. NextEra Energy is the largest regulated electric company in the United States according to its website. Here are several compelling stocks to buy if you’re looking for exposure to utility companies. Of course, you want your money invested with a company that’s going to grow and generate strong returns. No matter what sector you plan on investing in, there will always be winners and losers. Because there’s a fundamental need for utilities that grows as the population grows, there’s a strong argument that many utility stocks have nowhere to go but up.
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This popularity also means they’re a big-money business. Without utilities, life simply wouldn’t be the same.Īs a cornerstone of civilized society, just about everyone uses utilities. They are the reason lights turn on when you flip a switch, water flows when you turn a faucet handle, and your gas stove has flame when you turn a knob. Utilities are one of the most basic cornerstones of civilization as we know it.