NextEra Energy Shares Plunge 20% on Renewables Subsidiary's Dividend Cut, But Utility Still Looks Undervalued
-
NextEra Energy shares have fallen over 20% due to its renewable energy subsidiary cutting its dividend growth forecast.
-
The dividend cut is due to rising interest rates increasing the cost of capital for acquisitions.
-
NextEra has other ways besides acquisitions to fund growth, like investing in repowering projects.
-
The sell-off has left NextEra looking undervalued compared to utilities like Southern Company.
-
With a high yield and still strong growth, NextEra looks like a bargain after the steep sell-off.
