NextEra Energy, Inc. (NEE): Among the Best Energy Dividend Stocks to Buy Right Now

NextEra Energy, Inc. (NEE) has long been a favorite among income investors, thanks to its consistent dividend growth and attractive yield. As the world transitions towards renewable energy, NextEra Energy's commitment to clean energy sources positions it well for the future. In this article, we will explore why NextEra Energy is among the best energy dividend stocks to buy right now.

Consistent Dividend Growth and Attractive Yield

NextEra Energy has a history of consistent dividend growth, with an annual dividend of $2.06 per share in 2024, yielding 3.02%. This dividend growth is supported by the company's strong financial performance. In 2024, NextEra Energy's earnings were $6.95 billion, a decrease of -4.98% compared to the previous year's $7.29 billion. However, the company's earnings per share (EPS) have been growing, with an EPS growth rate of 82.27% over the past three years.

Analyst Ratings and Price Targets

According to 15 analysts, the average rating for NEE stock is "Buy." The 12-month stock price forecast is $86.6, which is an increase of 26.85% from the latest price. This indicates that analysts have a positive outlook on the company's future performance.

Industry Leadership and Long-term Financial Expectations

NextEra Energy is the world's largest generator of renewable energy from the wind and sun, and a world leader in battery storage. It operates clean, emissions-free nuclear power generation facilities in New Hampshire and Wisconsin as part of the NextEra Energy nuclear fleet. This leadership position in the renewable energy sector makes it an attractive choice for investors looking for exposure to the growing demand for clean energy. NextEra Energy has reaffirmed its long-term financial expectations, which include earnings growth of 6% to 8% per year through 2027.

Commitment to Renewable Energy and Sustainability

NextEra Energy's commitment to renewable energy and sustainability is a key driver of its long-term dividend growth potential. By investing in clean energy sources, such as wind, solar, and battery storage, NextEra Energy can drive energy affordability for customers and enhance reliability, resiliency, and cost certainty. This focus on sustainability and renewable energy can lead to several benefits that contribute to long-term dividend growth, including stable and growing cash flows, reduced fuel price volatility, access to new markets and opportunities, improved regulatory environment, and attracting and retaining investors.

Conclusion

NextEra Energy, Inc. (NEE) is among the best energy dividend stocks to buy right now, thanks to its consistent dividend growth, attractive yield, positive analyst ratings, industry leadership, and commitment to renewable energy and sustainability. As the world transitions towards clean energy, NextEra Energy's strong fundamentals and commitment to sustainability position it well for long-term success. Investors seeking exposure to the growing demand for renewable energy and a stable, attractive income stream should consider adding NextEra Energy to their portfolios.