This Utility Has Raised Its Dividend for 31 Straight Years. Here's the 1 Number I'd Check Before Buying.

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Dividend Streaks Are Nice, But Check The Payout Ratio First

NextEra Energy's 31-year dividend growth is impressive, but the payout ratio is the real tell.

NextEra Energy has something many investors like: a consistent dividend hike for over three decades. That signals a company confident in its cash flow and earnings. But before jumping in, look at the dividend payout ratio — the share of earnings paid out as dividends. At 62-64% based on 2026 guidance, it's on the higher side but still manageable for a regulated utility. This matters because a payout that's too high can leave little room for surprises or reinvestment. The utility's promise of 8% annual earnings growth through 2035 and rising electricity demand add backing to its sustainability story. For South African investors, direct exposure is limited since NextEra isn’t JSE-listed, so the USD/ZAR rate comes into play—anything that strengthens the rand versus the dollar makes foreign dividends effectively more attractive. Watch out though: if inflation spikes or regulatory environments change, that payout ratio could become a problem. this is just our opinion and not financial advice