Retirement Stock Portfolio: 12 Energy Stocks To Consider

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

NextEra Energy, Inc. (NYSE: NEE) is an American energy company that, through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. It generates electricity through wind, solar, nuclear, natural gas, and other clean energy.

Known to be an ultra-high-yield stock, NextEra Energy, Inc. (NYSE: NEE) has a dividend yield of 2.52% as of September 6. The company has maintained a consistent dividend payment record since 1986 and also increased its dividend each year for at least the past 29 years. This makes the stock a dividend aristocrat. With the demand for clean energy growing, NextEra Energy, Inc. (NYSE: NEE) has been expanding its capacity and business.

Its regulated utility business through Florida Power & Light (FPL) adds stability and reliable cash flow for NextEra Energy Inc. (NYSE:NEE). In Q2 2024, it beat earnings expectations with a reported EPS of $0.96, while expectations were $0.953. NextEra Energy, Inc. (NYSE: NEE) also expects to continue to grow dividends per share at roughly 10% per year through at least ‘26 off of 2024 base. Net income was also lower than expected due to lower segment sales and higher interest rates. Net income on a GAAP basis was reported to be $1.622 billion, or $0.79 per share, compared to $2.795 billion, or $1.38 per share, for the second quarter of 2023. Revenue for the quarter declined by 8.1% in its utility segment, partly due to low electricity rates.

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.”

At the end of the second quarter, the company was held by 73 hedge funds, with stakes worth $21.06 billion collectively.