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NextEra EnergyFRA:FP3 +0.63%85 5-Year Yield-on-Cost % is 4.27 as of Jul. 17, 2026, which is 8% above its 10-year median of 3.96. GuruFocus rates FRA:FP3 with a GF Score™ of 85/100 and a GF Value™ of €70.92 (Fairly Valued). The stock has 10 warning signs investors should review. Among 434 Utilities - Regulated companies, NextEra Energy ranks better than 53% on this metric.
NextEra Energy's yield on cost for the quarter that ended in Mar. 2026 was 4.27.
The historical rank and industry rank for NextEra Energy's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:FP3'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.67 Med: 3.96 Max: 5.89
Current: 4.27
During the past 13 years, NextEra Energy's highest Yield on Cost was 5.89. The lowest was 2.67. And the median was 3.96.
FRA:FP3's 5-Year Yield-on-Cost % is ranked better than 53% of 434
companies
in the Utilities - Regulated industry
Industry Median: 4.105
vs FRA:FP3: 4.27
NextEra Energy (FRA:FP3) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
NextEra Energy 5-Year Yield-on-Cost % Related Terms
FRA:FP3 vs SO, DUK, AEP: 5-Year Yield-on-Cost % Comparison
For the Utilities - Regulated Electric subindustry, NextEra Energy's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NextEra Energy 5-Year Yield-on-Cost % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, NextEra Energy's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where NextEra Energy's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of NextEra Energy is calculated as
NextEra Energy (FRA:FP3) has a 5-Year Yield-on-Cost % of 4.27 as of Jul. 17, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on NextEra Energy and its competitors. This is near median its historical median of 3.96. Over the past decade, NextEra Energy's 5-Year Yield-on-Cost % has ranged from 2.67 to 5.89. According to the industry distribution chart, NextEra Energy ranks #204 out of 434 companies in the Utilities - Regulated industry, placing it in the top 47%.
Is NextEra Energy's 5-Year Yield-on-Cost % too high?
NextEra Energy's current 5-Year Yield-on-Cost % of 4.27 is near median its 10-year median of 3.96. Over the past 10 years, this metric has ranged from a low of 2.67 to a high of 5.89. The Utilities - Regulated industry median 5-Year Yield-on-Cost % is 4.11. NextEra Energy's value of 4.27 is 4% above this industry median. Based on the distribution chart, NextEra Energy ranks #204 out of 434 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, NextEra Energy has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NextEra Energy's 5-Year Yield-on-Cost % compare to SO and DUK?
According to the Utilities - Regulated industry distribution chart, NextEra Energy ranks #204 out of 434 companies for 5-Year Yield-on-Cost %. This puts NextEra Energy in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 4.11. NextEra Energy's value of 4.27 is 4% above this benchmark. Historically, NextEra Energy's own 5-Year Yield-on-Cost % has ranged from 2.67 to 5.89 over the past decade. While the company's 10-year median is 3.96 vs. the industry median of 4.11, NextEra Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Utilities - Regulated company?
The median 5-Year Yield-on-Cost % among Utilities - Regulated companies is 4.11, based on 434 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NextEra Energy's current 5-Year Yield-on-Cost % of 4.27 is 4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on NextEra Energy and its competitors. For the Utilities - Regulated industry, the median 5-Year Yield-on-Cost % is 4.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NextEra Energy's current 5-Year Yield-on-Cost % is 4.27, which is near median its own 10-year median of 3.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextEra Energy stock overvalued right now?
Based on GuruFocus' analysis, NextEra Energy (FRA:FP3) is currently considered Fairly Valued. The stock's GF Value™ is €70.92, compared to a current price of €77.94 — trading 9.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 4.27, which is near median its 10-year median of 3.96 and 4% above the Utilities - Regulated industry median of 4.11. NextEra Energy's overall GF Score™ is 85/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For NextEra Energy (FRA:FP3), the current 5-Year Yield-on-Cost % is 4.27 as of Jul. 17, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NextEra Energy (FRA:FP3) Overvalued in 2026?
Based on GuruFocus' analysis, NextEra Energy stock appears to be overvalued.
The current stock price of €77.94 is trading 9.9% above its estimated GF Value™ of €70.92.
GuruFocus considers NextEra Energy to be Fairly Valued.
Key valuation signals for FRA:FP3:
5-Year Yield-on-Cost %: 4.27 (near median its 10-year median of 3.96)
GF Value™: €70.92 vs. price of €77.94 (9.9% above fair value)
Industry Position: 4% above the Utilities - Regulated median (#204 of 434)
No single metric tells the full story. See the FRA:FP3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NextEra Energy's regulated utility, Florida Power & Light, is the largest rate-regulated utility in Florida. The utility distributes power to over 6 million customer accounts in Florida and owns 36 gigawatts of generation. FP&L contributes roughly 70% of NextEra's consolidated operating earnings. NextEra Energy Resources, the renewable energy segment, generates and sells power throughout the United States and Canada with nearly 40 GW of generation capacity, including natural gas, nuclear, wind, and solar.
85GF Score
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