12 Best Electric Utility Stocks to Buy Now

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

Number of Hedge Fund Investors: 84

A renewable energy firm, NextEra Energy, Inc. (NYSE:NEE) is headquartered in Florida and produces, distributes, and sells electricity. It is one of the largest electric utilities in the country. The stock has shot up by almost 21% over the last 12 months, showing that it is producing solid returns and making it one of the Best Utility Stocks. The business mostly functions as a regulated utility, guaranteeing a steady and predictable flow of revenue. Although any planned capital improvements or rate changes need regulatory approval, the utility company in Florida maintains a monopoly within its service areas.

Long-term contracts and regulated rate structures provide steady cash flow for NextEra Energy, Inc. (NYSE:NEE)’s business segments, which supports a dividend that yielded more than 2.5% in mid-2024. Moreover, the firm typically has a dividend payout ratio that is lower than average, which gives it the financial flexibility to create more renewable power projects and invest in cleaner energy.

By 2027, management aims to boost its renewable energy capacity from 36 gigawatts to 46.5 gigawatts, which could double the business in the coming years. NextEra Energy, Inc. (NYSE:NEE) and GE Vernova have also signed a framework agreement to develop natural gas power production technologies that can handle several gigawatts for data centers and other industries.