Why NextEra Energy's (NEE) Dividend History Appeals to Long-Term Investors

NextEra Energy, Inc. (NYSE:NEE) is included among the 12 Best Dividend Aristocrat Stocks to Invest in Right Now.

NextEra Energy, Inc. (NYSE:NEE) is the largest electric utility holding company in the U.S. The growing need for electricity, fueled by the rapid expansion of AI data centers, the return of manufacturing to domestic soil, and the increasing adoption of electric vehicles, is expected to transform the global energy sector in the years ahead. Power demand in the US alone might increase by 55% at most by 2040, necessitating a significant expansion in capacity. This is good for companies growing their power infrastructure, and NextEra is a clear top leader. Its substantial capital expenditures to enhance production may allow its growth to proceed in both business and dividend payout, which are attractive.

NextEra Energy, Inc. (NYSE: NEE) is the parent company of Florida Power & Light (FPL), the country’s largest electric utility company, and also an energy resources arm that is one of the largest power producers. The company is one of the best-known leaders in the development and production of renewable energy.

Moreover, NextEra Energy, Inc. (NYSE:NEE) is also a steady dividend payer, having increased its payments for 29 years. The company has a quarterly dividend of $0.5665 per share and a dividend yield of 3.00%, as of September 26.

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.