3 Analysts Just Raised Price Targets For This Dividend Aristocrat

NextEra Energy, Inc. NEE, a leading clean energy company and a member of the esteemed Dividend Aristocrats club, has a strong track record of consistently growing its dividends, making it an attractive option for income-seeking investors. Over the past five years, NextEra Energy has delivered a dividend CAGR of 10.74%, showcasing its commitment to rewarding shareholders.

The company's stock has performed well year-to-date, with shares up 19.7%. However, its price is down roughly 5% this week after the company issued its fiscal year 2027 adjusted earnings guidance, which came in slightly below analyst estimates. NextEra Energy reaffirmed its adjusted EPS outlook through 2026 and guided for 2027 adjusted EPS of $3.85-$4.32 per share, compared to the FactSet analyst consensus of $4.35 per share.

Today's Analyst Ratings for NextEra Energy

According to Benzinga Pro data, three analysts have raised their price targets for NextEra Energy today in light of the company’s recent guidance and long-term growth prospects. 

BMO Capital increased its price target from $78 to $79, maintaining an “Outperform” rating. Evercore ISI Group raised its price target from $70 to $75, keeping an “In-Line” rating. RBC Capital also boosted its price target from $74 to $84, reiterating an “Outperform” rating.

Two other analysts maintained their price targets, with Wells Fargo reaffirming its “Overweight” rating and $95 price target. However, Mizuho downgraded the stock from “Buy” to “Neutral,” while keeping its $71 price target unchanged.

The average price target from today’s analyst actions stands at $80.80, implying an upside potential of 11.27% from the current price of $72.62. This suggests that despite the recent pullback, analysts remain bullish on NextEra Energy’s long-term prospects.

NextEra Energy As a Long-Term Income Play

NextEra Energy’s commitment to dividend growth, coupled with its strong position in the clean energy sector, makes it an attractive option for investors seeking both income and potential capital appreciation. The company’s latest earnings release highlights its solid performance, with strong growth in its renewable energy business and steady results from its regulated utility operations.

While the market may react to short-term guidance fluctuations, long-term investors should focus on NextEra Energy’s proven track record of delivering consistent dividend increases and its leadership in the growing clean energy space. With a current dividend yield of 2.83% and a payout ratio of 59%, NextEra Energy appears well-positioned to continue its impressive streak of 28 consecutive years of dividend growth.

As always, investors should conduct their own due diligence and consider their individual investment objectives and risk tolerance before making any investment decisions. However, for those seeking a reliable dividend growth stock with exposure to the promising clean energy sector, NextEra Energy is definitely worth a closer look, especially given the recent analyst endorsements.

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