NextEra Energy: A Top Defensive Pick For 2023

Old and new energy

SanderStock

Investment Thesis

As pundits sound the alarm over the US economy, investors are increasingly seeking shelter in defensive stocks, namely Utilities, characterized by low earnings variability and stable dividend, underpinning the sector’s performance in the past twelve months.

Chart
Data by YCharts

NEE Capital Investments

NEE Capital Investments (NextEra)

Florida Housing Permits

Florida Housing Permits (“FRED”)

US Electricity Production By Source

US Electricity Production By Source (“EIA”)

NEE Debt Profile Debt (million $) Interest Maturity
Revolving credit facilities $ 850 Variable 2023
Debentures $ 5,375 2.94 – 5% 2024
Debentures $ 400 Variable 2024
Debentures, related to NEE’s equity units $ 2,000 4.60% 2027
First mortgage bonds $ 1,500 2.45% 2032
Senior unsecured notes $ 1,444 Variable 2024 – 2072