10 Best Roth IRA Stocks to Buy According to Analysts

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

Analysts Upside Potential: 22.7%

NextEra Energy, Inc. (NYSE:NEE) is an American renewable company, headquartered in Florida. The company mainly generates, transmits, and sells electricity. It benefits from two key growth drivers. The company operates Florida Power & Light (FPL), the largest electric utility in Florida, which gains from the state’s ample sunshine and steady population growth. In addition, its energy resources division, a leading developer and operator of renewable energy, is capitalizing on increasing demand and declining costs.

Beyond its core utility business, NextEra Energy, Inc. (NYSE:NEE) generates stable cash flow from its clean energy segment, which operates under long-term contracts. With the growing shift toward renewables, the company is rapidly expanding this division. Management aims to boost its renewable energy capacity from 36 gigawatts to 46.5 gigawatts by 2027, potentially doubling the business in the coming years.

On February 14, NextEra Energy, Inc. (NYSE:NEE) announced a 14% increase in its quarterly dividend to $0.5665 per share, marking 29 consecutive years of dividend growth and reinforcing its status as a top dividend aristocrat. These payouts are backed by strong cash flow, with the company generating over $13.2 billion in operating cash flow in fiscal 2024. Looking ahead, it plans to raise its dividend per share by around 10% annually through at least 2026, using its 2024 distribution as the baseline. As of March 23, the stock has a dividend yield of 3.2%.