NextEra Energy: A Top Electrical Infrastructure Stock to Consider

As an investor, you're always on the lookout for companies that offer a mix of stability, growth, and sustainability. NextEra Energy (NEE) is one such company that has caught the attention of analysts and investors alike. But is it the best electrical infrastructure stock to buy? Let's dive into the details and find out.

First, let's address the elephant in the room: NextEra Energy's commitment to renewable energy and sustainability. Unlike many of its competitors, NEE has set a clear target to achieve net-zero carbon emissions by 2045. This dedication is reflected in its business model, with approximately 70% of its assets in regulated utilities and the remainder in renewable power generation. This strategy positions NEE well for long-term growth, as it increases earnings and cash flows through strategic investments in renewable assets.

Now, let's talk about NextEra Energy's strategic acquisitions and organic growth. The company has a well-chalked out capital investment plan, totaling $50-$55 billion from 2020 to 2022. These investments have enabled NEE to modernize and strengthen its infrastructure, serving nearly 10 million people through approximately 5 million customer accounts. This investment has facilitated the generation of more energy from clean sources and the reduction of carbon emissions, aligning with the company's goal of lowering its carbon dioxide emissions rate to 67% by 2025 from a 2005 base.



NextEra Energy's financial performance is another aspect that sets it apart from its competitors. The company has a compound annual growth rate of 9.8% in adjusted earnings per share between 2012 and 2022. Its dividend yield of 3.6% is near the highest levels of the past decade, making it an attractive choice for growth-and-income investors. Compared to peers like Duke Energy (DUK) with 8.2 million customers and Southern Co (SO) with 9 million customers, NEE serves more than 12 million residents, indicating its extensive reach.



Despite higher costs due to interest rate increases, NEE projects a 10% dividend boost in 2024, supported by robust adjusted earnings projections. This combination of financial performance, commitment to sustainability, and strategic growth initiatives makes NextEra Energy an attractive option for investors seeking a balance between stability and growth.

In conclusion, NextEra Energy's commitment to renewable energy, strategic acquisitions, and strong financial performance make it one of the best electrical infrastructure stocks to consider. Its regulated utility segment provides a stable foundation for growth, while its renewable energy segment drives long-term growth. The combination of these two segments enables NEE to achieve consistent earnings growth and dividend increases, making it an appealing choice for investors looking to diversify their portfolios with a sustainable and growing company.