How To Earn $1,000 Per Month From NextEra Energy (NYSE: NEE) Stock

NextEra Energy Inc. NEE opened trading on Dec. 14 at $63.54. The stock was 2.98% higher than the opening price in the early hours of the trading session. The 52-week price range for NextEra Energy stock is $47.15 to $88.60.

As reported in its 10-Q filing on Nov. 7, the cumulative dividend expenses for the nine months ending in September were $2.8 billion, 12.6% higher than the dividend payments for the same period last year. Dividend expense for the third quarter of 2023 was $946 million ($0.4675 per common share).

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Earning $1,000 Per Month With Your NextEra Energy Investment

If you want to earn $1,000 per month, or $12,000 annually, from NextEra Energy dividends, your investment value will be close to $369,231. At $63.54 a share, you will have around 5,811 shares of NextEra Energy. But, if you opt for a lower earnings target of $200 per month, your investment value reduces to $73,846 or 1,162 shares.

Calculating the estimated investment value using dividend yields: You can determine an approximate investment value based on two parameters. The first is your desired annual income. The second is the dividend yield of the stock. The dividend yield can be calculated by dividing the annual dividend payments by the market price of a stock. 

If you want to earn $1,000 per month, your investment value will be $12,000 annually divided by the dividend yield of 3.25% ($12,000 / 0.0325 = $369,231). When the earnings expectation is $200 per month or $2,400 per year, the calculation is $2,400 / 0.0325 or $73,846.

When estimating your investment value, it is important to note that the dividend yield can change over time. This is because of the movement in stock prices or a change in the dividend payments. The above estimations assume that the stock price is constant. If there is a capital appreciation, the dividend yield decreases — the dividend yield and the stock price have an inverse correlation. 

Take a numerical example for clarity. If a stock pays $2 as an annual dividend and is priced at $50, its dividend yield would be $2 / $50 or 4%. When the stock price appreciates to $60, the dividend yield declines to 3.33% ($2 / $60). When the stock price dips to $40, the dividend yield rises to 5% ($2 / $40).

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