"Sorry, but I don't get the hype surrounding Nextera. It’s been trading sideways since 2021, while Iberdrola has doubled in value during that time. As for U.S. stocks, I hold AMERICAN Electric Power. It’s up 60% since 2021, after all. Both stocks show stable performance and strong investment activity."
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@userc7b02065b8a7407b I can certainly understand that. Looking purely at stock price performance since 2021, $IBE and $AEP have clearly outperformed so far. That’s precisely why all three companies are actually on my watchlist.
With $NEE, however, I see the investment case less in past stock performance and more in the combination of the regulated utility business through Florida Power & Light and the growth potential of NextEra Energy Resources. Added to this are the ambitious investments in grid infrastructure and renewable energy, as well as the long-term goal of profit and dividend growth. The valuation, however, is precisely what has kept me from investing so far.
$IBE I also find $AEP very exciting and have both companies closely on my watchlist. So far, however, I’ve deliberately decided against investing because I’ve recently allocated my capital to other investment ideas. Should a more attractive valuation or entry opportunity arise for any of the three companies, I would definitely reassess my position.
With $NEE, however, I see the investment case less in past stock performance and more in the combination of the regulated utility business through Florida Power & Light and the growth potential of NextEra Energy Resources. Added to this are the ambitious investments in grid infrastructure and renewable energy, as well as the long-term goal of profit and dividend growth. The valuation, however, is precisely what has kept me from investing so far.
$IBE I also find $AEP very exciting and have both companies closely on my watchlist. So far, however, I’ve deliberately decided against investing because I’ve recently allocated my capital to other investment ideas. Should a more attractive valuation or entry opportunity arise for any of the three companies, I would definitely reassess my position.
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@userc7b02065b8a7407b But a sideways phase with high volatility 😅
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•A 2.6% dividend yield is also something you'd be happy to take
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•@DividendenPapa Yes, your arguments are convincing.
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@userc7b02065b8a7407b $NEE had already reached a new all-time high by the end of April. This was followed by a slight setback after the announcement of plans to acquire rival Dominion Energy for a whopping $67 billion. This would create the world’s largest publicly traded electric utility—though such mega-deals also bring uncertainties. In any case, the boards of directors of both companies have now approved the merger plans—another step in a process that, according to market observers, could take between 12 and 18 months.
And the stock price:
These are just minor fluctuations right now. The question is simply whether you’re a long-term investor or a trader. $IBE hasn’t come close to matching this price performance over the past 40 years. Between 2007 and 2012, the stock price also moved almost entirely sideways. But if you hold such stocks a bit longer—ten years, 20 years—then the entry point doesn’t matter at all, and the personal dividend yield is enormous.
And the stock price:
These are just minor fluctuations right now. The question is simply whether you’re a long-term investor or a trader. $IBE hasn’t come close to matching this price performance over the past 40 years. Between 2007 and 2012, the stock price also moved almost entirely sideways. But if you hold such stocks a bit longer—ten years, 20 years—then the entry point doesn’t matter at all, and the personal dividend yield is enormous.
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•@Gomerdoc Thanks for your insight! I basically agree with you on the long-term investment horizon. If the investment thesis holds up over many years, the perfect entry point naturally becomes less important. Still, even as a long-term investor, I try not to buy at the very peak. A good company remains a good company, but in my view, the valuation still influences the long-term return. That’s why I’m currently keeping $NEE on my watchlist and waiting for an opportunity where, in my opinion, the company’s quality and valuation align better.
I’ll also continue to monitor the potential deal. If it goes through as planned and clears the regulatory hurdles, it could further strengthen $NEE ’s long-term position. At the same time, it will be interesting to see what impact this will have on the balance sheet, debt, and capital allocation. That’s exactly why I think the coming quarters will be particularly interesting.
I’ll also continue to monitor the potential deal. If it goes through as planned and clears the regulatory hurdles, it could further strengthen $NEE ’s long-term position. At the same time, it will be interesting to see what impact this will have on the balance sheet, debt, and capital allocation. That’s exactly why I think the coming quarters will be particularly interesting.
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•I think your thoughts are good.
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