Dividend Stock Portfolio: 8 Stocks To Invest In According to Reddit

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

Number of Hedge Fund Holders: 73

NextEra Energy, Inc. (NYSE:NEE) ranks fourth on our list of the best stocks for a dividend stock portfolio. Retail investors favor the company due to its strong business model. Over the past few decades, the demand for clean energy has steadily risen, and the company has consistently invested in expanding its capacity and operations to meet this demand. Analysts also believe that the company is well-positioned to benefit from the growing need for renewable energy, particularly from tech companies. These companies are working to meet their climate targets while also expanding their energy-hungry data centers.

According to the US Department of Energy, solar and wind energy accounted for just 13% of the electricity generated in the country in 2022, but this percentage is projected to grow in the coming years. Additionally, the overall demand for electricity in the US is on the rise. NextEra Energy, Inc. (NYSE:NEE) surged by nearly 35% since the start of 2024, surpassing the broader market, which gained over 20% during this period.

ClearBridge Investments also highlighted AI momentum in the energy sector 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.”

On July 25, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.515 per share. The company has been rewarding shareholders with growing dividends for the past 28 years. The stock’s dividend yield on September 21 came in at 2.5%.

NextEra Energy, Inc. (NYSE:NEE) was a part of 73 hedge fund portfolios at the end of Q2 2024, up from 72 a quarter earlier, according to Insider Monkey’s database. These stakes have a total value of over $2.1 billion. Among these hedge funds, GQG Partners was the company’s leading stakeholder in Q2.