The Median Utility Bill is $363 a Month. Here's How Much You'd Need in NextEra Energy Stock to Cover It Every Month.
Key Points
The median U.S. household spends $363 per month, or $4,356 per year, on utilities.
One could cover this with a 2,058-share position in NextEra Energy, worth around $156,500.
NextEra has a 32-year track record of dividend growth, and recently raised its dividend by 10%. That said, management has already guided for lower dividend increases, and NextEra's upcoming Dominion merger could affect dividend growth as well.
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U.S. households pay a median of $363 per month, or $4,356 per year, in utility bills. Representing around 5% of annual household income, utility bills are up by nearly 5% compared to 2025, exceeding the 3.4% inflation for the 12-month period ended August 2026.
These essential household expenses are unavoidable, but what if there were a way to pay your utility bill with proceeds from utility stocks? For example, how many shares in NextEra Energy (NYSE: NEE) would you need to earn enough dividends to pay the bill?
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How many NextEra shares would cover your utility bill?
NextEra Energy has a forward dividend yield of 3.27%. The stock's quarterly cash dividend is 62.32 cents per share, or $2.49 per share annually. So, how many NextEra shares would you need to cover utilities?
First, to account for the 15% qualified dividend tax rate, let's take the annual median utility spending, $4,356, and divide it by 0.85. To cover both dividend taxes and the utility bills, a household would need around $5,124.70 in annual dividend income from a NextEra position. Next, divide that figure by the annual cash dividend amount. This works out to around 2,058 shares, which at today's prices comes out to $156,572.
Why this utility stock can keep you ahead of rising utility prices
NextEra is far from the highest-yielding utility stock, but the company, which is the parent of Florida Power & Light and one of the largest owners of renewable energy infrastructure in the U.S., has a long track record of dividend growth. NextEra has raised payouts for 32 consecutive years. In recent years, dividend growth has averaged around 10%.
Hence, with utility prices, especially electricity prices, rising faster than overall inflation, that same 2,058-share position in NextEra could cover your utility bills for years, if not decades to come. That said, management has already guided for dividend growth of just 6% over the next two years. It's also unclear how NextEra's pending merger with Dominion Energy will affect dividend growth during 2028 and beyond.
Should you buy stock in NextEra Energy right now?
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.
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