4. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 72
NextEra Energy, Inc. (NYSE:NEE) is a Florida-based renewable energy company that focuses on the generation of energy from solar and wind projects. The company gains from its business model, as the demand for clean energy has consistently increased over the past few decades. In response, the company has regularly invested in expanding its capacity and business. Analysts also believe that the company is well-positioned to capitalize on the growing demand for renewable energy from tech companies. These tech companies are striving to meet climate goals while expanding their electricity-intensive data centers. The stock is up by over 15% in 2024 so far.
ClearBridge Investments also mentioned this in its Q2 2024 investor letter. Here is what the firm has to say about NextEra Energy, Inc. (NYSE:NEE):
“AI-related momentum was a key driver of performance in the second quarter, lifting the enablers in technology as well as holdings like renewable power producer NextEra Energy, Inc. (NYSE:NEE) that supply the increasing energy needs of data centers. Parts of the market lacking an AI connection, like our medical device holdings, underperformed despite no change to fundamentals. We have managed through several similar momentum periods over our tenure and have delivered long-term results for shareholders by staying true to an approach that emphasizes diversification across three buckets of growth companies (select, stable and cyclical) and seeks to take advantage of attractive entry points into quality growth businesses.”
NextEra Energy, Inc. (NYSE:NEE) owns Florida Power & Light Company (FPL), the largest electric utility in the US. FPL provides clean, affordable, and reliable electricity to its 5.9 million customer accounts, serving over 12 million people across Florida. Roughly 70% of the company’s operations are tied to FPL, which recently saw its most significant quarterly customer growth in over 15 years, adding more than 100,000 new customers compared to the same period last year. According to analysts, the company is set for continued growth, with management aiming to more than double its capacity by the end of 2027. This will also help boost its dividend growth in the future. Expectations are high, with projections of around 10% annual growth in dividends per share through at least 2026.
At its recent investor meeting, NextEra Energy, Inc. (NYSE:NEE) informed shareholders that U.S. power demand is expected to rise by 38% over the next two decades. The company believes that a significant portion of this increased demand will be met through renewable energy and battery storage. Analysts projected capital expenditures of $65 billion to $70 billion from 2024 through 2027.
NextEra Energy, Inc. (NYSE:NEE) is a solid dividend growth stock, having raised its payouts at an annual average rate of nearly 11% over the past five years. In addition, it has been rewarding shareholders with growing dividends for the past 28 consecutive years, which makes NEE one of the best dividend stocks on our list. The company pays a quarterly dividend of $$0.515 per share and has a dividend yield of 2.90%, as of July 15.
The number of hedge funds tracked by Insider Monkey owning stakes in NextEra Energy, Inc. (NYSE:NEE) grew to 72 in Q1 2024, from 65 in the previous quarter. These stakes have a total value of more than $1.73 billion.
