TCM tonight: Casablanca. Wow, every time I watch it, I see something new. What a great movie.
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Investing
SRE vs NEE
Elevator Speech
This caught my eye tonight. Over at NASDAQ dividend announcements, the site had a "down" arrow for the newly announced dividend declaration for NEE, but when I checked, everything suggested that, in fact, the company increased its dividend over the previous quarter, which was accurate. The dividend was increased 10% from the previous quarter.
Going back through the dividend history, NEE paid $1.40 / share one year ago, compared to 35 cents/share last quarter, and now 38.5 cents / share for holders or record, February 26, 2021.
LATER: a reader said the dividend was decreased because the stock split 4 -1 , October 26, 2020, or thereabouts.That explains everything. In fact this utility has outpaced every other utility. This is an incredible story. See Motley Fool at these links:
So, year-over-year, NEE's dividend is significantly lower (38.5 cents versus $1.40) -- and maybe that explains the down arrow, despite being up over the previous quarter. But it certainly was wrong. I've seen this before.
Whatever, it caught my attention.
Again, I don't follow utilities very closely, but I'm watching Casablanca and don't have much else to do, so thought this was a good time to compare NextEra Energy with my favorite public utility, Sempra Energy.
Right, wrong, or indifferent, I see:
- NEE:
- great region to be a utility with few risks: Florida
- domestic focus
- heavily committed to wind and solar
- SRE:
- with huge operations in California, huge risks: litigation, regulation, fires, local antagonism to natural gas;
- heavily committed to natural gas
- cutting risk by taking interest in Texas
- a more international focus
Then at Yahoo!Finance (figures may be rounded):
- NEE:
- earnings date: late April, 2021
- market cap: $160 billion
- P/E: 55
- pays: 1.67% (at $1.40 was paying 5 - 7%)
- share price, over the past year: $45 - $90
- today: $85
- one year target: $90
- SRE:
- earnings date: Feb 25, 2021
- market cap: $36 billion
- P/E: 10
- pays: 3.32%
- share price, over the past year: $88 - $160
- today: $125
- one year target: $145
Yahoo!Finance considers share prices over-valued for both companies.
This may be fascinating to watch.
Although this is dynamic and not current, this is what Yahoo!Finance is reporting:
- NEE:
- EPS: $1.48
- Forward dividend: $1.40
- SRE:
- EPS: $13.01/share
- Forward dividend: $4.18
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