5 Best Electric Utility Stocks To Invest In

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

Number of Hedge Fund Holders: 59

NextEra Energy, Inc. (NYSE:NEE) is one of the best utility stocks to invest in. The company generates, transmits, and distributes electric power to retail and wholesale customers in North America, using wind, solar, nuclear, coal, and natural gas facilities. On October 14, NextEra Energy, Inc. (NYSE:NEE) declared a $0.425 per share quarterly dividend, in line with previous. The dividend is payable on December 15, to shareholders of record on November 25. 

On October 24, Guggenheim analyst Shahriar Pourreza assigned a Buy rating to NextEra Energy, Inc. (NYSE:NEE) but lowered the firm’s price target on the shares to $99 from $108. The analyst is refreshing some estimates before the Q3 earnings season in the Power and Utilities group to account for “known and measurable year-over-year items”. 

Among the hedge funds tracked by Insider Monkey, Ken Fisher’s Fisher Asset Management featured as the leading position holder in NextEra Energy, Inc. (NYSE:NEE), with 16.2 million shares worth $1.26 billion. Overall, 59 hedge funds were long NextEra Energy, Inc. (NYSE:NEE) at the end of June 2022, compared to 64 funds in the last quarter. 

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.”

You can also take a look at 13 Best Long-Term Dividend Stocks To Invest In and 11 Best High Beta Stocks To Buy Now. 

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