10 Magnificent Dividend Growth Stocks to Invest In

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

5-Year Average Dividend Growth Rate: 10.40%

NextEra Energy, Inc. (NYSE:NEE) is a Florida-based renewable energy company that generates, transmits, and sells electricity. The stock is generating strong returns, surging by nearly 26% in the past 12 months. The company primarily operates as a regulated utility, ensuring a stable and predictable revenue stream. Its utility business in Florida holds a monopoly within its service areas, though any proposed capital investments or rate adjustments require regulatory approval.

In addition to its utility operations, NextEra Energy, Inc. (NYSE:NEE) generates consistent cash flow through its clean energy segment, which operates under long-term contracts. With the rising demand for renewable energy, the company is aggressively expanding this division. Management aims to increase its renewable energy capacity from the current 36 gigawatts to 46.5 gigawatts by 2027, potentially doubling the business over the next few years.

On February 14, NextEra Energy, Inc. (NYSE:NEE) announced a 14% increase in its quarterly dividend, raising it to $0.5665 per share. This adjustment extended its dividend growth streak to 29 consecutive years, which makes it one of the best dividend aristocrat stocks. Strong cash flow supports these distributions, with NextEra generating more than $13.2 billion in operating cash flow during fiscal 2024. Looking ahead, the company plans to grow its dividend per share by approximately 10% annually through at least 2026, using its 2024 payout as the benchmark. The stock supports a dividend yield of 3.11%, as of March 9.