16 Best Income Stocks To Buy According to Analysts

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

Upside Potential as of December 13: 21.2%

NextEra Energy, Inc. (NYSE:NEE) is an American renewable energy company. It is one of the largest utility companies in the US, primarily operating regulated electric utilities in Florida, with Florida Power & Light being its largest subsidiary. Florida’s ongoing population growth has driven an increase in the utility’s customer base. However, this growth has required significant investment to meet the rising demand. Regulators, who prioritize reliable service for customers, are typically supportive of the company’s spending efforts to accommodate the expanding population. The stock has surged by over 19.5% since the start of 2024.

In the third quarter of 2024, NextEra Energy, Inc. (NYSE:NEE) reported revenue of $7.57 billion, up by 5.6% from the same period last year. The company delivered another impressive quarter in renewable energy and storage development, adding roughly 3 gigawatts (GW) to its project backlog for the second quarter in a row. Over the past four quarters, the company has secured a total of approximately 11 GW in new projects.

Madison Investments made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2024 investor letter:

“The top contributors in the quarter were NextEra Energy, Inc. (NYSE:NEE), Oracle Corporation, Progressive Corporation, Equifax Inc., and United Healthcare. NextEra has continued to perform well given its strong position in the renewable energy space, increasing demand for power, its transmission capabilities, as well as a tailwind from lower interest rates.”

On October 18, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.515 per share, which was in line with its previous dividend. Overall, the company has raised its payouts for 28 consecutive years. As of December 13, the stock has a dividend yield of 2.8%. With an upside potential of over 21%, NEE is one of the best dividend stocks on our list.

Of the 900 hedge funds in Insider Monkey’s database at the end of Q3 2024, 69 funds held stakes in NextEra Energy, Inc. (NYSE:NEE), compared with 73 in the previous quarter. The total value of these stakes is over $2.47 billion. With over 12.7 million shares, GQG Partners was the company’s leading stakeholder in Q3.