10 Best Dividend Aristocrat Stocks To Buy Right Now

7. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 69

NextEra Energy, Inc. (NYSE:NEE) is a Florida-based renewable energy company. In the third quarter of 2024, the company reported revenue of $7.57 billion, which saw a nearly 6% growth from the same period last year. For the second quarter in a row, it added around 3 gigawatts of new renewable energy and storage projects to its backlog, marking another successful quarter for renewables origination. The stock has surged by nearly 24% since the start of 2024.

In recent decades, the demand for clean energy has grown consistently, and NextEra Energy, Inc. (NYSE:NEE) has continuously invested in increasing its capacity and operations to meet this demand. Analysts also believe the company is strategically positioned to capitalize on the rising demand for renewable energy, especially from tech companies. These companies are striving to meet their climate goals while simultaneously expanding their energy-intensive data centers. The company has already announced plans to invest nearly $100 billion between 2024 and 2027. This substantial investment is expected to more than double NextEra Energy’s renewables and storage capacity by 2027. Management anticipates adjusted earnings per share (EPS) growth of 6% to 8% through 2027 and a nearly 10% increase in dividends per share through 2026.

Madison Investments made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2024 investor letter:

“The top contributors in the quarter were NextEra Energy, Inc. (NYSE:NEE), Oracle Corporation, Progressive Corporation, Equifax Inc., and United Healthcare. NextEra has continued to perform well given its strong position in the renewable energy space, increasing demand for power, its transmission capabilities, as well as a tailwind from lower interest rates.”

On October 18, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.515 per share, which was consistent with its previous dividend. The company’s dividend growth streak spans over 28 years, which makes NEE one of the best dividend aristocrat stocks. The stock supports a dividend yield of 2.7%, as of November 25.

NextEra Energy, Inc. (NYSE:NEE) was a part of 69 hedge fund portfolios at the end of Q3 2024, compared with 73 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of nearly $2.5 billion.