Dividend Stock Portfolio For Income: Top 10 Stocks to Buy

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

Number of Hedge Fund Holders: 81

NextEra Energy, Inc. (NYSE:NEE) is an American renewable energy company that generates, transmits, and sells electricity. On February 14, the company revealed a 14% hike in its quarterly dividend, bringing it to $0.5665 per share. This marks the company’s 29th consecutive year of dividend increases. The steady dividend growth is supported by robust cash flow, with NextEra generating over $13.2 billion in operating cash flow during fiscal 2024. Moving forward, the company intends to raise its dividend per share by approximately 10% annually through at least 2026, using its 2024 payout as a reference point. With a dividend yield of 3.18%, as of February 25, NEE is one of the best stocks for a dividend stock portfolio.

NextEra Energy, Inc. (NYSE:NEE)’s primary business revolves around its regulated utility operations, which provide a stable and predictable foundation. Like other regulated utilities, its Florida-based operations hold a monopoly in the regions they serve, though any capital investment plans or rate adjustments must receive government approval.

Another key segment is its clean energy division, which generates consistent cash flow through long-term contracts. With strong demand for renewable energy, NextEra Energy, Inc. (NYSE:NEE) is rapidly expanding this segment. Management anticipates installing up to 46.5 gigawatts of renewable energy by 2027, a significant increase from the current 36 gigawatts. This growth suggests the business could nearly double in size within a few years.