5 Best Alternative Energy Stocks to Buy Now

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

Number of Hedge Fund Holders: 59  

NextEra Energy, Inc. (NYSE:NEE) transmits, distributes, and sells electric power to retail and wholesale customers in North America. The firm is among the best clean energy stocks to invest in. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past thirty-two years. The sector median in this regard is just sixteen years. These payouts have also registered consistent growth in the past twenty-six years. On July 29, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.425 per share, in line with previous. The forward yield was 2.01%. 

On September 16, BMO Capital analyst James Thalacker maintained an Outperform rating on NextEra Energy, Inc. (NYSE:NEE) stocks and raised the price target to $100 from $92, highlighting the renewables backlogs and investment recovery of the firm in the past months.

At the end of the second quarter of 2022, 59 hedge funds in the database of Insider Monkey held stakes worth $2.76 billion in NextEra Energy, Inc. (NYSE:NEE), compared to 64 in the preceding quarter worth $2.85 billion. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NextEra Energy, Inc. (NYSE:NEE) was one of them. Here is what the fund said:

“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world that energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.

The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”