S&P 500 Dividend Aristocrats List: Sorted By Hedge Fund Sentiment

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

Number of Hedge Fund Holders: 73

NextEra Energy, Inc. (NYSE:NEE) is an American renewable energy company, headquartered in Florida. The company mainly focuses on the generation of energy from solar and wind projects. It gains significantly from current industry trends. The US Department of Energy reports that solar and wind energy made up only 13% of the electricity generated domestically in 2022, but this share is expected to increase in the coming years. Furthermore, the overall demand for electricity in the US is also rising.

In response to these growing demands, NextEra Energy, Inc. (NYSE:NEE) has consistently invested in expanding its capacity and operations. Analysts also think that the company is strategically positioned to benefit from the increasing need for renewable energy driven by technology firms. These tech companies are working to achieve their climate objectives while growing their electricity-hungry data centers. Since the start of 2024, the stock has surged by over 28%, surpassing the broader market, which gained nearly 18% 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) announced a quarterly dividend of $0.515 per share, which fell in line with its previous dividend. The company’s dividend growth streak currently spans over 28 years, which makes NEE one of the best dividend aristocrat stocks on our list. The stock has a dividend yield of 2.61%, as of August 19.

Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 73 funds owned stakes in NextEra Energy, Inc. (NYSE:NEE), up from 72 in the previous quarter. These stakes have a total value of more than $2.1 billion.