NextEra Energy: The Must-Own Stock for the Coming Power Boom

As the global economy shifts towards renewable energy, the demand for electricity is set to surge, presenting a significant opportunity for investors. One company that stands out as a must-own stock in this coming power boom is NextEra Energy (NEE). With its unparalleled scale, diversified business model, and commitment to clean energy, NextEra Energy is well-positioned to capitalize on the growing demand for electricity and generate substantial returns for shareholders.

NextEra Energy's scale and flexibility in following growth opportunities, such as renewable energy, natural gas, and nuclear power, contribute significantly to its competitive advantage in the energy sector. The company's vast renewable energy portfolio, which includes wind and solar projects, provides a steady stream of cash flows through long-term power purchase agreements (PPAs) with utilities and other large power users. This scale allows NextEra Energy to invest in new projects and acquisitions, expanding its renewable energy capacity and leveraging its expertise to develop innovative solutions.



NextEra Energy's natural gas-fired generation capacity complements its renewable energy portfolio, providing flexibility to balance the grid and ensure reliability. Natural gas can ramp up and down quickly to meet changing demand, reducing the company's exposure to commodity price fluctuations. Additionally, NextEra Energy has signed a framework agreement with GE Vernova to build new natural gas-power generation solutions, presenting further growth opportunities.

The company's experience in nuclear power, including its ownership of the Duane Arnold nuclear power plant in Iowa, positions it to capitalize on new nuclear power opportunities as they emerge. NextEra Energy's expertise in nuclear power enables it to maintain and operate its existing nuclear fleet, ensuring reliable and low-cost power generation.

NextEra Energy's strong track record of earnings growth and dividend increases is a testament to its outperformance relative to its peers. The company has grown its adjusted earnings per share (EPS) by more than double the rate of its peers over the past 20 years, at 8.9% compared to 3.8%. This has allowed NextEra Energy to grow its dividend at a 10% compound annual rate during that period, producing superior total returns of 15.7% annualized compared to 9.8% for the average utility and 10.2% for the S&P 500.

Key drivers behind NextEra Energy's outperformance include its significant investment in clean energy infrastructure, growth in renewable energy capacity, diversified business model, and strong financial discipline. The company's commitment to clean energy and its ability to capitalize on the growing demand for electricity position it well to benefit from the coming power boom.

In conclusion, NextEra Energy's scale, flexibility, and commitment to clean energy make it an attractive choice for investors seeking exposure to the coming power boom. The company's strong financial performance, diversified business model, and growth opportunities across renewable energy, natural gas, and nuclear power position it to generate substantial returns for shareholders in the years ahead. As the global economy continues to shift towards renewable energy, NextEra Energy is well-positioned to capitalize on the growing demand for electricity and create value for its shareholders.