Dividend Stock Showdown: NextEra Energy vs. Dominion Energy -- Which Should You Own?
NextEra Energy is buying Dominion, but the deal is probably a year away from completion.
Overview
When it comes to mergers and acquisitions, one of the big questions is always, "Is it better to buy the acquirer or the target?" That's particularly interesting with regard to NextEra Energy's (NYSE: NEE) planned purchase of Dominion Energy (NYSE: D). The key factor is the long approval process that normally accompanies large utility mergers. Here's a look at this merger and which of these two stocks is the better dividend option right now.
NextEra Energy is one of the world's largest utilities and also one of the world's largest solar and wind companies. That said, on the regulated utility side of the business, it primarily operates in just one state, Florida. That's been a net positive for years, as the Sunshine State has benefited from in-migration. However, scale is increasingly important in the utility industry.
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Originally published at www.fool.com.