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

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

Number of Hedge Fund Holders: 81

NextEra Energy, Inc. (NYSE:NEE) ranks eighth on our list of the best dividend aristocrat stocks. The American renewable energy company that generates, transmits, and sells electricity. The stock has climbed more than 26% over the past year. In Q4 2024, the company’s adjusted earnings per share (EPS) grew by around 2% year-over-year, while its full-year EPS rose 8.2%. Looking ahead, NextEra targets adjusted EPS growth of 6% to 8% through 2027, expecting to reach the upper end of this range in 2024.

Headquartered in Florida, NextEra Energy, Inc. (NYSE:NEE) operates Florida Power & Light, the nation’s largest electric utility. It also leads globally in wind and solar energy generation. Management anticipates US power demand will increase by approximately 55% between 2020 and 2040. In 2024, the company expanded its generation and storage capacity by about 12 gigawatts and currently holds a 25-gigawatt backlog.

On February 14, NextEra Energy, Inc. (NYSE:NEE) announced a 14% increase in its quarterly dividend to $0.5665 per share, marking its 29th consecutive year of dividend growth. As of February 23, the stock offers a dividend yield of 3.17%. This consistent dividend growth is backed by strong cash flow, with the company generating over $13.2 billion in operating cash flow in fiscal 2024. Looking ahead, NextEra plans to raise its dividend per share by roughly 10% annually through at least 2026, using its 2024 payout as the baseline.

At the end of Q4 2024, 81 hedge funds tracked by Insider Monkey held stakes in NextEra Energy, Inc. (NYSE:NEE), growing significantly from 69 in the previous quarter. The collective value of these stakes is over $3.1 billion.