Our investing approach — which focuses on higher-rated, higher-yielding, defensively positioned, more-conservative stocks — is tailor-made for this market, suggests Mike Larson, editor of Safe Money Report.
It’s also why the stocks in Bedrock Income Portfolio are defensive, relatively highly rated names like NextEra Energy (NEE), our latest recommendation.
Formerly known as FPL Group, NextEra is the dominant electric utility provider here in Florida. It serves more than 5.5 million customers throughout the state via regulated utility operations.
It’s also expanding the NextEra Energy Resources division that builds, owns and operates wind and solar generation projects in four states.
Adjusted earnings totaled $718 million, or $1.49 per share, in the fourth quarter of 2018. That was up almost 22% from $590 million, or $1.24 per share, in the year-earlier period. Operating revenue climbed 9.8% to $4.39 billion from $4 billion.
NextEra is also continuing to expand prudently in its home region and in other parts of the U.S. In the fourth quarter, the company completed or announced acquisitions of the Vero Beach, Fla., municipal utility; a high-voltage transmission system that delivers power to San Francisco; and the Gulf Power generation facilities.
NextEra is as “Steady Eddie” a stock as they come. It has maintained a buy rating from our Weiss Ratings system for several years. It pays a quarterly dividend of $1.25 per share currently, good for an indicated yield of 2.4%. It has raised that dividend at an annual rate of more than 11% for the past half-decade.
Go ahead and add this to your Bedrock model portfolio. We suggesting using a below-market limit price of $182.50. The hope is that this will allow you to get in on a pullback at a better price.