10 Best Dividend Growth Stocks to Buy and Hold Now

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

5-Year Annual Dividend Growth Rate: 10.74%

NextEra Energy, Inc. (NYSE:NEE) is another best dividend aristocrat stock on our list with 28 consecutive years of dividend growth under its belt. The renewable energy company owns Florida Power & Light Company (FPL), which is the largest electric utility in the US. It delivers clean, affordable, and reliable electricity to its 5.9 million customer accounts, serving over 12 million people throughout Florida. Approximately 70% of the company’s operations are linked to FPL, which recently experienced its most significant quarterly customer growth in over 15 years, adding more than 100,000 new customers compared to the same period last year.

Increasing the customer base contributes significantly to growth by expanding the number of electricity consumers. Management has leveraged this strong foundation to establish one of the largest solar and wind power companies globally. According to analysts, the company is poised for continued expansion, with management aiming to more than double its capacity by the end of 2027. This will also contribute to its dividend growth in the future. Continued expectations indicate around 10% annual growth in dividends per share through at least 2026.

NextEra Energy, Inc. (NYSE:NEE) expects to benefit from rising electricity demand in the upcoming years. In one of his recent interviews, the company’s CEO, John Ketchum, highlighted with investors that US power demand is expected to surge by 38% over the next two decades, marking a significant increase compared to the growth rate observed in the previous 20 years. The company foresees renewables and battery storage playing a crucial role in meeting this heightened demand. Currently, NextEra Energy, Inc. (NYSE:NEE) boasts a strong pipeline of 300 gigawatts in renewable energy and storage projects.

NextEra Energy, Inc. (NYSE:NEE) offers a quarterly dividend of $0.515 per share and has a dividend yield of 2.95%, as of July 2. The company’s five-year average dividend growth rate stands at 10.74%, which places it as one of the best dividend aristocrat stocks on our list.

NextEra Energy, Inc. (NYSE:NEE) was a part of 72 hedge fund portfolios at the end of Q1 2024, up from 65 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of more than $1.73 billion.