NextEra Energy (NYSE: NEE) has a strong track record of paying dividends. The utility has increased its payout every year for the past thirty years and has grown its dividend at an impressive 11% compound annual rate over the last decade.
One of the key drivers behind the utility’s growing dividend is its focus on investing in renewable energy. With the increasing demand for clean energy, NextEra Energy is well-positioned to continue growing its dividend at a robust pace in the future.
Recently, NextEra Energy entered into a joint development agreement with Entergy (NYSE: ETR) to accelerate the development of up to 4.5 gigawatts of new solar generation and storage projects over the next five years. This partnership will not only help Entergy expand its renewable energy portfolio but also provide customers with more low-cost, carbon-free energy.
NextEra Energy’s growth outlook is already strong, with expectations of 6% to 8% annual growth in earnings per share through 2026. The company’s robust backlog of renewable energy projects and industry-leading pipeline further support its growth prospects.
Forecasters predict significant growth in the U.S. renewable energy market, and NextEra Energy is well-positioned to capture a meaningful portion of this opportunity. The company’s dividend growth is expected to continue, making it an attractive stock for investors seeking a rapidly rising passive income stream fueled by renewable energy.
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Overall, NextEra Energy’s commitment to renewable energy and strong growth outlook make it a compelling choice for investors looking to capitalize on the shift towards clean energy.