5 Best Utility Dividend Stocks To Buy

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

Number of Hedge Fund Holders: 59

Dividend Yield as of October 28: 2.15%

NextEra Energy, Inc. (NYSE:NEE) is a Florida-based company that generates, distributes, and sells electric power to retail and wholesale customers in North America. 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 the company as of November 25. NextEra Energy, Inc. (NYSE:NEE)’s dividend yield on October 28 came in at 2.15%. The company also posted market-beating Q3 2022 financial results. It is one of the premier dividend stocks to invest in. 

On October 24, Guggenheim analyst Shahriar Pourreza reaffirmed a Buy on NextEra Energy, Inc. (NYSE:NEE) but lowered the firm’s price target on the stock to $99 from $108. 

Among the hedge funds tracked by Insider Monkey, NextEra Energy, Inc. (NYSE:NEE) was part of 59 public stock portfolios at the end of June 2022, compared to 64 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 16.2 million shares worth $1.25 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.”

You can also take a look at 10 Best Medical Stocks Under $5 and 10 Best Pharma Dividend Stocks To Invest In. 

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