Is NextEra Energy (NEE) the Best Utility Stock to Buy in August?

NextEra Energy, Inc. (NYSE:NEE) is included among the 10 Best Dividend Stocks to Buy in August.

NextEra Energy, Inc. (NYSE:NEE), the largest global producer of wind and solar energy, plays a central role in the United States’ transition to clean energy. The company operates through two main divisions: Florida Power & Light, a regulated utility, and NextEra Energy Resources, which focuses on clean energy solutions. Together, these segments have positioned the company as a major force in reducing carbon emissions from the national power grid. Over the past ten years, NextEra has delivered returns that have exceeded those of the broader market, showcasing its strength and consistent value generation in the renewable energy space.

NextEra Energy, Inc. (NYSE:NEE) reported a strong cash position in the second quarter of 2025. For the first six months of the year, the company generated $5.9 billion in operating cash flow. It ended the quarter with nearly $1.8 billion available in cash and cash equivalents. Due to this stable cash profile, the company expects to increase its dividend per share by around 10% annually through at least 2026, starting from its 2024 level.

On July 24, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.5665 per share, which was the same as in the previous quarter. Overall, NEE is a Dividend Aristocrat, with 29 consecutive years of dividend growth under its belt. The stock has a dividend yield of 3.18%, as of July 28.

While we acknowledge the potential of NEE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.