Jim Cramer’s Top 10 Bullish Stock Picks

6. NextEra Energy Inc. (NYSE:NEE)

Number of Hedge Fund Investors: 73

Jim Cramer expressed strong support for NextEra Energy Inc. (NYSE:NEE), noting that it offers a significant dividend. However, he admitted that his enthusiasm for NextEra Energy Inc. (NYSE:NEE) is primarily based on the attractive dividend, and he has some concerns about whether there are other compelling reasons to invest in it.

“The stock I want to back up the Brinks truck on is NextEra Energy Partners. It offers a big dividend, but I’m not sure why we should buy it beyond that— and I’m a little concerned about that.”

NextEra Energy Inc. (NYSE:NEE) is a top player in the renewable energy sector, focusing heavily on wind and solar power. With a large pipeline of renewable energy projects, NextEra Energy Inc. (NYSE:NEE) is set to see significant growth in revenue and earnings in the near future. Its proven track record of running operations efficiently and managing costs effectively supports this positive outlook.

The regulated utility business through Florida Power & Light (FPL) adds stability and reliable cash flow for NextEra Energy Inc. (NYSE:NEE). Additionally, favorable government policies and incentives for renewable energy and carbon reduction align with NextEra Energy Inc. (NYSE:NEE)’s goals, positioning the company well for ongoing success in the evolving energy market.

ClearBridge Large Cap Growth Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter:

“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.”