Three Ideal ETFs to Buy This June
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 35 minutes ago
0mins
Source: Fool
- Dividend Yield Advantage: The Schwab U.S. Dividend Equity ETF (SCHD) boasts a 3.3% dividend yield, significantly higher than the S&P 500's 1.1%, with its 100 holdings achieving over 9% annual payout growth in the past five years, resulting in a strong 13.3% annualized total return since its inception in 2011, indicating robust income growth potential.
- Bond Market Coverage: The Vanguard Total Bond Market ETF (BND) holds nearly 11,400 high-quality bonds, with approximately 70% being U.S. government bonds, currently offering a yield to maturity of 4.6%, which provides investors with a steady stream of interest income while effectively reducing portfolio risk, particularly during market volatility.
- Utility Growth Potential: The Vanguard Utilities ETF (VPU) invests in 67 utility stocks, with NextEra Energy (NEE) making up 12.6% of its holdings, and U.S. power demand projected to grow by 60% over the next 20 years, which will drive earnings growth in utility stocks and enhance the ETF's total return potential.
- Industry Consolidation Impact: NextEra Energy's $67 billion acquisition of Dominion will create the world's largest regulated electric utility company, with an expected annual earnings per share growth of over 9% through 2032, further strengthening the Vanguard Utilities ETF's market competitiveness and income-generating capacity.
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Analyst Views on NEE
Wall Street analysts forecast NEE stock price to rise
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 87.250
Low
84.00
Averages
92.50
High
100.00
Current: 87.250
Low
84.00
Averages
92.50
High
100.00
About NEE
NextEra Energy, Inc. is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources, LLC and NextEra Energy Transmission, LLC (collectively, NEER) and Florida Power & Light Company (FPL). Its segments include NEER and FPL. FPL segment is a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electric energy in Florida. FPL has approximately 35,052 megawatts of net generating capacity, over 91,000 circuit miles of transmission and distribution lines and 921 substations. The NEER segment owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the United States and Canada and includes assets and investments in other businesses with a clean energy focus, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, constructs and operates rate-regulated transmission facilities in North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Three Ideal ETFs to Buy This June
- Dividend Yield Advantage: The Schwab U.S. Dividend Equity ETF (SCHD) boasts a 3.3% dividend yield, significantly higher than the S&P 500's 1.1%, with its 100 holdings achieving over 9% annual payout growth in the past five years, resulting in a strong 13.3% annualized total return since its inception in 2011, indicating robust income growth potential.
- Bond Market Coverage: The Vanguard Total Bond Market ETF (BND) holds nearly 11,400 high-quality bonds, with approximately 70% being U.S. government bonds, currently offering a yield to maturity of 4.6%, which provides investors with a steady stream of interest income while effectively reducing portfolio risk, particularly during market volatility.
- Utility Growth Potential: The Vanguard Utilities ETF (VPU) invests in 67 utility stocks, with NextEra Energy (NEE) making up 12.6% of its holdings, and U.S. power demand projected to grow by 60% over the next 20 years, which will drive earnings growth in utility stocks and enhance the ETF's total return potential.
- Industry Consolidation Impact: NextEra Energy's $67 billion acquisition of Dominion will create the world's largest regulated electric utility company, with an expected annual earnings per share growth of over 9% through 2032, further strengthening the Vanguard Utilities ETF's market competitiveness and income-generating capacity.
See More
Three Top ETFs to Diversify Your Investment Portfolio
- Dividend Stock Advantage: The Schwab U.S. Dividend Equity ETF tracks 100 high-quality dividend stocks, with its holdings growing payouts by over 9% annually over the past five years, resulting in a 3.3% dividend yield that is three times that of the S&P 500, showcasing strong income growth potential.
- Bond Market Coverage: The Vanguard Total Bond Market ETF holds nearly 11,400 high-quality bonds, with approximately 70% being U.S. government bonds, currently offering a yield to maturity of 4.6%, providing investors with a steady stream of interest income while reducing portfolio risk.
- Utility Stock Growth: The Vanguard Utilities ETF invests in 67 utility stocks, with NextEra Energy accounting for 12.6% of its holdings, and through a $67 billion acquisition of Dominion, it expects to achieve over 9% annual earnings per share growth, indicating robust growth potential in the utility sector.
- Portfolio Diversification: These three ETFs not only help investors achieve broad diversification across asset classes and sectors but also enhance long-term returns while lowering risk, making them excellent investment choices for June.
See More
Investment Value of Stable Dividend Stocks
- ExxonMobil's Dividend History: ExxonMobil has increased its dividend for 43 consecutive years, paying out $17 billion to shareholders last year and returning an additional $20 billion through share repurchases, showcasing its strong capital management and stable cash flow.
- NextEra Energy's Acquisition Plans: NextEra Energy plans to acquire Dominion Energy in an all-stock transaction, which, if successful, will create the world's largest regulated electric utility company, with an expected completion in 12 to 18 months, further solidifying its market position.
- Air Products and Chemicals' Stability: Air Products has paid dividends every year since 1954 and has raised its payout for 44 consecutive years, ensuring predictable earnings and stable returns for investors due to long-term contracts and high barriers to entry.
- Market Environment Impact: Disruptions in the Middle East have caused helium prices to rebound, and combined with high oil prices and supply constraints, chemical prices have risen, leading to strong performance in Air Products' North American refining and chemicals segments, enhancing its appeal as a reliable income stock.
See More
Three Quality Dividend Stocks with Growth
- ExxonMobil's Consistent Returns: ExxonMobil (XOM) has raised its dividend for 43 consecutive years, paying out $17 billion in dividends last year and returning another $20 billion through share buybacks, showcasing its strong capital return capability, with advantaged assets projected to comprise 65% of upstream production by 2030.
- NextEra Energy's Acquisition Plans: NextEra Energy (NEE) has increased its dividend for 32 years and recently announced an all-stock acquisition of Dominion Energy, which, if successful, will create the world's largest regulated electric utility, with projected earnings per share reaching between $3.92 and $4.02 and a dividend growth of about 10%.
- Air Products' Stability: Air Products (APD) has paid dividends every year since 1954 and has raised its payout for 44 consecutive years, ensuring future earnings visibility through 15- to 20-year contracts while pivoting towards clean energy with significant investments in green hydrogen production.
- Investment Opportunities Amid Market Volatility: Despite disruptions in the Middle East affecting helium prices, Air Products continues to provide reliable returns for investors due to its pricing power and robust profitability, making it a noteworthy income stock to consider.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Legal Investigation Launched: Halper Sadeh LLC is investigating LiveRamp Holdings, Inc. (NYSE: RAMP) regarding its sale to Publicis Groupe for $38.50 per share, as there may be violations of shareholder rights that investors need to be aware of.
- Merger Impact Analysis: The merger between NextEra Energy, Inc. (NYSE: NEE) and Dominion Energy, Inc. will result in NextEra shareholders owning approximately 74.5% of the combined entity, prompting shareholders to understand the potential implications for their rights.
- Shareholder Rights Protection: InMed Pharmaceuticals, Inc. (NASDAQ: INM) is merging with Mentari Therapeutics, Inc., which is expected to leave InMed shareholders with only about 1.51% ownership in the combined company, highlighting the need for shareholders to be informed about their legal rights.
- Advocacy for Investor Rights: Halper Sadeh LLC represents investors globally, seeking increased consideration and additional disclosures to support those affected by securities fraud and corporate misconduct, thereby enhancing investor protection efforts.
See More
Monteverde Law Firm Investigates Multiple Mergers
- Shareholder Compensation Investigation: Monteverde & Associates is investigating the transaction between LiveRamp Holdings, Inc. and Publicis Groupe, where LiveRamp shareholders are expected to receive $38.50 per share in cash, potentially providing significant returns for shareholders.
- Merger Transaction Analysis: In the merger between NextEra Energy, Inc. and Dominion Energy, Inc., NextEra shareholders will own approximately 74.5% of the combined company upon closing, demonstrating strong consolidation capabilities in the energy market.
- Share Exchange Proposal: In the NextEra and Dominion transaction, Dominion shareholders are expected to receive 0.8138 shares of NextEra for each share of Dominion, which may impact the long-term interests of shareholders from both companies.
- Emerging Pharma Merger: The merger between InMed Pharmaceuticals, Inc. and Mentari Therapeutics, Inc. is expected to result in InMed shareholders owning approximately 1.51% of the combined company, reflecting integration trends and market potential in the pharmaceutical sector.
See More
Three Ideal ETFs to Buy This June
- Dividend Yield Advantage: The Schwab U.S. Dividend Equity ETF (SCHD) boasts a 3.3% dividend yield, significantly higher than the S&P 500's 1.1%, with its 100 holdings achieving over 9% annual payout growth in the past five years, resulting in a strong 13.3% annualized total return since its inception in 2011, indicating robust income growth potential.
- Bond Market Coverage: The Vanguard Total Bond Market ETF (BND) holds nearly 11,400 high-quality bonds, with approximately 70% being U.S. government bonds, currently offering a yield to maturity of 4.6%, which provides investors with a steady stream of interest income while effectively reducing portfolio risk, particularly during market volatility.
- Utility Growth Potential: The Vanguard Utilities ETF (VPU) invests in 67 utility stocks, with NextEra Energy (NEE) making up 12.6% of its holdings, and U.S. power demand projected to grow by 60% over the next 20 years, which will drive earnings growth in utility stocks and enhance the ETF's total return potential.
- Industry Consolidation Impact: NextEra Energy's $67 billion acquisition of Dominion will create the world's largest regulated electric utility company, with an expected annual earnings per share growth of over 9% through 2032, further strengthening the Vanguard Utilities ETF's market competitiveness and income-generating capacity.
See More
Three Top ETFs to Diversify Your Investment Portfolio
- Dividend Stock Advantage: The Schwab U.S. Dividend Equity ETF tracks 100 high-quality dividend stocks, with its holdings growing payouts by over 9% annually over the past five years, resulting in a 3.3% dividend yield that is three times that of the S&P 500, showcasing strong income growth potential.
- Bond Market Coverage: The Vanguard Total Bond Market ETF holds nearly 11,400 high-quality bonds, with approximately 70% being U.S. government bonds, currently offering a yield to maturity of 4.6%, providing investors with a steady stream of interest income while reducing portfolio risk.
- Utility Stock Growth: The Vanguard Utilities ETF invests in 67 utility stocks, with NextEra Energy accounting for 12.6% of its holdings, and through a $67 billion acquisition of Dominion, it expects to achieve over 9% annual earnings per share growth, indicating robust growth potential in the utility sector.
- Portfolio Diversification: These three ETFs not only help investors achieve broad diversification across asset classes and sectors but also enhance long-term returns while lowering risk, making them excellent investment choices for June.
See More
Investment Value of Stable Dividend Stocks
- ExxonMobil's Dividend History: ExxonMobil has increased its dividend for 43 consecutive years, paying out $17 billion to shareholders last year and returning an additional $20 billion through share repurchases, showcasing its strong capital management and stable cash flow.
- NextEra Energy's Acquisition Plans: NextEra Energy plans to acquire Dominion Energy in an all-stock transaction, which, if successful, will create the world's largest regulated electric utility company, with an expected completion in 12 to 18 months, further solidifying its market position.
- Air Products and Chemicals' Stability: Air Products has paid dividends every year since 1954 and has raised its payout for 44 consecutive years, ensuring predictable earnings and stable returns for investors due to long-term contracts and high barriers to entry.
- Market Environment Impact: Disruptions in the Middle East have caused helium prices to rebound, and combined with high oil prices and supply constraints, chemical prices have risen, leading to strong performance in Air Products' North American refining and chemicals segments, enhancing its appeal as a reliable income stock.
See More
Three Quality Dividend Stocks with Growth
- ExxonMobil's Consistent Returns: ExxonMobil (XOM) has raised its dividend for 43 consecutive years, paying out $17 billion in dividends last year and returning another $20 billion through share buybacks, showcasing its strong capital return capability, with advantaged assets projected to comprise 65% of upstream production by 2030.
- NextEra Energy's Acquisition Plans: NextEra Energy (NEE) has increased its dividend for 32 years and recently announced an all-stock acquisition of Dominion Energy, which, if successful, will create the world's largest regulated electric utility, with projected earnings per share reaching between $3.92 and $4.02 and a dividend growth of about 10%.
- Air Products' Stability: Air Products (APD) has paid dividends every year since 1954 and has raised its payout for 44 consecutive years, ensuring future earnings visibility through 15- to 20-year contracts while pivoting towards clean energy with significant investments in green hydrogen production.
- Investment Opportunities Amid Market Volatility: Despite disruptions in the Middle East affecting helium prices, Air Products continues to provide reliable returns for investors due to its pricing power and robust profitability, making it a noteworthy income stock to consider.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Legal Investigation Launched: Halper Sadeh LLC is investigating LiveRamp Holdings, Inc. (NYSE: RAMP) regarding its sale to Publicis Groupe for $38.50 per share, as there may be violations of shareholder rights that investors need to be aware of.
- Merger Impact Analysis: The merger between NextEra Energy, Inc. (NYSE: NEE) and Dominion Energy, Inc. will result in NextEra shareholders owning approximately 74.5% of the combined entity, prompting shareholders to understand the potential implications for their rights.
- Shareholder Rights Protection: InMed Pharmaceuticals, Inc. (NASDAQ: INM) is merging with Mentari Therapeutics, Inc., which is expected to leave InMed shareholders with only about 1.51% ownership in the combined company, highlighting the need for shareholders to be informed about their legal rights.
- Advocacy for Investor Rights: Halper Sadeh LLC represents investors globally, seeking increased consideration and additional disclosures to support those affected by securities fraud and corporate misconduct, thereby enhancing investor protection efforts.
See More
Monteverde Law Firm Investigates Multiple Mergers
- Shareholder Compensation Investigation: Monteverde & Associates is investigating the transaction between LiveRamp Holdings, Inc. and Publicis Groupe, where LiveRamp shareholders are expected to receive $38.50 per share in cash, potentially providing significant returns for shareholders.
- Merger Transaction Analysis: In the merger between NextEra Energy, Inc. and Dominion Energy, Inc., NextEra shareholders will own approximately 74.5% of the combined company upon closing, demonstrating strong consolidation capabilities in the energy market.
- Share Exchange Proposal: In the NextEra and Dominion transaction, Dominion shareholders are expected to receive 0.8138 shares of NextEra for each share of Dominion, which may impact the long-term interests of shareholders from both companies.
- Emerging Pharma Merger: The merger between InMed Pharmaceuticals, Inc. and Mentari Therapeutics, Inc. is expected to result in InMed shareholders owning approximately 1.51% of the combined company, reflecting integration trends and market potential in the pharmaceutical sector.
See More
