NextEra Energy Inc. (NEE) will raise its quarterly dividend by 12.0 percent to $1.40 per share in the first quarter of 2020. This follows last year's 12.6 percent dividend hike by the utility company and is consistent with the plan announced in 2018 of targeting 12 pct to 14 pct annual growth in dividends per share through at least 2020, off a 2017 base.

The next dividend is payable on March 16, 2020, to shareholders of record on Feb. 28, 2020. The new annualized rate of $5.60 per share yields 2.0% at a stock price of $277. Nextera Energy will now pay an estimated $2.74 billion in dividends to its shareholders annually.

In today's press release the board of NextEra also approved an updated dividend policy for beyond 2020, which is expected to translate to a growth rate in dividends per share of roughly 10% per year through at least 2022, off a 2020 base, which is expected to be $5.60 per share. The utility company has now hiked its dividend by double digits for five consecutive years.

"The board's approval to continue to grow our dividends per share in excess of our expected adjusted earnings per share growth rate is a result of our success in executing on our industry-leading business strategy," said Jim Robo, chairman and chief executive officer of NextEra Energy in the company´s press release announcing this latest dividend hike. "With a 60% payout ratio at the end of 2019, well below the peer average of approximately 65%, and the continued strength of the earnings and operating cash flow growth at NextEra Energy, we remain well-positioned to support the dividend policy going forward. I believe we continue to offer a best-in-class total return potential, with above-average dividend growth and clear visibility to deliver financial results at or near the top end of our adjusted earnings per share expectations ranges in 2020, 2021 and 2022, while at the same time maintaining our strong credit ratings."

NextEra Energy, Inc. is a clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns two electric companies in Florida: Florida Power & Light Company, which serves customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States; and Gulf Power Company, which serves customers in counties throughout northwest Florida. NextEra Energy also owns NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin.