NextEra Energy (NYSE: NEE) is one of the best stocks in the marketplace for investors that engage in thematic investing. One of the biggest themes in the marketplace today is the shift towards clean, renewable energy and away from polluting fossil fuels. NextEra Energy is an investment in that trend towards renewable energy, as the company both builds and operates energy projects that produce clean, emissions-free electricity, which drives the company’s results. In addition to the positive effects that NextEra is having on the environment with its renewable energy focus, NextEra Energy has been a great wealth building stock to own over the last several decades for its investors. The company’s future over the next decade also seems it will be equally as bright as its past, as NextEra Energy still has the ability to produce steady long-term growth, in addition to a small, secure, and fast-growing dividend for Growth & Income investors.
NextEra’s dividend has increased annually for 27 consecutive years and the company has the best growth potential in the utility industry. NextEra Energy has outperformed the S&P 500 and the S&P 500 Utilities Index in terms of total shareholder return on a 3, 5, 10 and 15-year basis. Over the past 10 years, NextEra has delivered compound annual growth and adjusted EPS of approximately 9%, which is the highest among all top 10 U.S. power companies, who have achieved, on average, compound annual growth of only around 3% over the same period.
Recently, NextEra’s stock price has dropped off a cliff. Since the beginning of the year, the stock has dropped around 22%, mostly over fears of rising interest rates. In general, utilities get severely impacted by rising interest rates and NextEra is no different. NextEra is a very high-quality stock that growth & income investors should buy as the stock continues to pull back.
Let’s look at NextEra Energy and its subsidiaries operating performance in its end of year earnings report.
NextEra Energy Resources
NextEra Energy is a company that provides both growth and income to investors and the portion of the company that provides most of the growth is subsidiary NextEra Energy Resources (NER). This subsidiary develops, constructs and operates power projects that produce renewable, clean electricity across the USA.
The growth of NER is driven by the number of development projects that the company completes. Over the full year of 2021, the subsidiary wound up adding approximately 7,200 net megawatts to its backlog, with backlog additions having grown at a more than 20% compound annual growth rate since 2017. NER has now signed nearly 80% of the megawatts needed to realize the midpoint of the company’s 2021 to 2024 development expectations range. NER has not…
Read More: NextEra Energy: Pay Up For The Best Utility Stock In The Market (NYSE:NEE)