NextEra Energy (NEE), the parent company of Florida Power & Light Company, hiked its dividend by 10% as expected last month. Based on its historical dividend yield, NEE stock could be worth 7% to 30% more, making it attractive to value investors. Moreover, shorting out-of-the-money (OTM) put options can provide good short-term yield income.
NEE closed at $73.55 on Friday, March 14, down from a peak on March 16 of $76.16, but up from a recent low of $66.96 on January 13. I previously discussed how cheap the stock was on Feb. 12: “Investors Bullish on NextEra Energy - Huge Unusual Call Options Activity - Dividend Hikes Likely.” This article will update those developments.
