NEE vs SO: Dividend Comparison

At $93.81 per share, $10,000 buys about 106.6 shares of Nextera Energy Inc (NEE). Each share pays $2.27 per year in dividends, so the position starts out generating roughly $242 per year — about $20 a month.

At $94.53 per share, $10,000 buys about 105.8 shares of Southern Co (SO). Each share pays $2.92 per year in dividends, so the position starts out generating roughly $309 per year — about $26 a month.

SO is the larger income stream from day one: $67 per year more on the same $10,000 invested.

Nextera Energy Inc (NEE) has raised its dividend about 10.2% a year over the past five years. If that pace held, the $249 per year that $10,000 generates today at the current 2.49% yield would reach $657 per year by 2036 — a 6.6% yield on the original cost.

Southern Co (SO) has raised its dividend about 2.9% a year over the past five years. If that pace held, the $322 per year that $10,000 generates today at the current 3.22% yield would reach $429 per year by 2036 — a 4.3% yield on the original cost.

On those trailing rates, NEE pays more in 2036: $657 versus $429 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.

Nextera Energy Inc (NEE) yields less today (2.49% vs 3.22%) but has grown its dividend faster — 10.2% vs 2.9% a year over the past five years. If both trends continued, a $10,000 position in NEE would start out-earning the same position in SO around 2030 (roughly 4 years from now), paying about $367 per year at the crossover. Before that point, SO pays more each year; after it, the gap compounds in NEE's favor.

Nextera Energy Inc (NEE) earns $3.28 per share against $2.27 paid out in dividends — 1.4x coverage (a 69% payout ratio).

Southern Co (SO) earns $4.02 per share against $2.92 paid out in dividends — 1.4x coverage (a 73% payout ratio).

Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.

For income you need right now, Southern Co (SO) leads: $100,000 invested today pays about $268 a month at the current 3.22% yield, versus $208 a month from Nextera Energy Inc (NEE) at 2.49%.

With a decade or more before the income is needed, NEE's faster dividend growth (10.2% vs 2.9% a year) matters more than the starting yield — raises compound into the larger paycheck over time.

On consistency: NEE has raised its dividend 30 consecutive years; SO has raised its dividend 25 consecutive years.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.