NextEra Energy Inc. declared a quarterly dividend of $1.11 per common share, a 13% increase over the comparable quarter of the prior year.

The dividend is payable March 15 to shareholders of record Feb. 27. The increase is in line with the company's targeted growth rate of 12% to 14% in dividends per share through at least 2018, off a 2015 base, NextEra said in a Feb. 16 release.

The company also approved a two-year extension of its existing dividend policy, which is expected to translate to a growth rate in dividends per share of 12% to 14% per year through at least 2020, off a 2017 base of $3.93 per share.

"With a payout ratio of only [59%] at the end of 2017, well below the peer average of roughly [65%], and $5 billion to $7 billion in excess balance sheet capacity, we remain well-positioned to support the dividend policy going forward," said Jim Robo, NextEra chairman and CEO. "I believe we continue to offer a best-in-class total return potential, with above-average dividend growth and our recently extended [6% to 8%] compound annual growth rate in adjusted earnings per share through 2021."