10 Best Dividend Growth Stocks to Buy and Hold in 2025

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

5-Year Annual Dividend Growth Rate: 10.51%

NextEra Energy, Inc. (NYSE:NEE) ranks fifth on our list of the best dividend aristocrat stocks. The Florida-based renewable energy company posted strong earnings recently. In the third quarter of 2024, the company reported revenue of $7.57 billion, a 5.6% increase from the previous year. The company had another strong quarter in renewable energy and storage development, adding about 3 gigawatts (GW) to its project backlog for the second consecutive quarter. Over the past four quarters, it has secured roughly 11 GW in new projects.

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.”

In addition to its strong foundation, NextEra Energy, Inc. (NYSE:NEE) has developed one of the largest portfolios of solar and wind power assets worldwide. This segment has gained from the shift away from polluting carbon fuels towards cleaner, renewable energy sources. Given the long-term nature of the power transition, the company is poised for continued growth over the coming decades. In the past 12 months, the stock has delivered a nearly 19% return to shareholders.

NextEra Energy, Inc. (NYSE:NEE) announced a quarterly dividend of $0.515 per share on October 18, which fell in line with its previous dividend. In 2024, the company stretched its dividend growth streak to 28 years. Moreover, the company has raised its payouts at an annual average rate of over 10.5% in the past five years. The stock supports a dividend yield of 2.86%, as of December 29.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 69 funds held stakes in NextEra Energy, Inc. (NYSE:NEE), compared with 73 in the previous quarter. The consolidated value of these stakes is more than $2.47 billion. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.