Why NextEra Energy Is a Top Dividend Stock to Watch in 2025

NextEra Energy, Inc. (NYSE:NEE) is one of the Best Stocks to Buy for Dividends.

The company benefits from a strong two-part business model. Its regulated utility arm, Florida Power & Light, delivers steady cash flow, while its renewable energy segment, NextEra Energy Resources, supports future growth through clean energy development.

NextEra Energy, Inc. (NYSE:NEE) has increased its dividend for 29 straight years and currently offers a solid 3.22% yield. For income-focused investors, the company provides both the reliability of a utility and strong potential for dividend growth. Its yield stands out compared to many clean energy stocks, and a five-year dividend growth rate of 10.5% reflects management’s commitment to rewarding shareholders. With a payout ratio of 59.7%, the company maintains a healthy balance between reinvesting in growth and sustaining dividends.

Looking ahead, management expects earnings to grow between 6% and 8% annually through at least 2027, supporting continued dividend increases. NextEra Energy, Inc. (NYSE:NEE) currently offers a quarterly dividend of $0.5665 per share.

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.