The Ultimate Dividend Growth Stock to Buy With $500 Right Now (and It Isn't NextEra Energy)

Core Insights - WEC Energy is highlighted as an attractive investment opportunity compared to NextEra Energy, which has seen significant price appreciation in 2024 [2][3] - WEC Energy offers a high-yield dividend growth stock option, trading down a couple of percentage points, making it appealing for dividend growth investors [2][3] Company Overview - WEC Energy has a market capitalization of approximately $26 billion, positioning it below NextEra Energy's $145 billion market cap [4] - The company serves 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota, operating as a regulated natural gas and electric utility [5] Business Model - WEC Energy's business is primarily regulated, contrasting with NextEra Energy's hybrid model that includes a significant clean energy component [6] - The company has maintained a consistent annual dividend growth rate of 7% over the past one, three, five, and ten years, demonstrating stability [8] Dividend Performance - WEC Energy has a 21-year streak of annual dividend increases, with a 10-year annualized dividend growth rate of 7%, which is commendable for a utility [7] - The current dividend yield for WEC Energy is around 4%, significantly higher than NextEra Energy's 2.9% and the average utility yield of 3.2% [9] Future Outlook - Management projects earnings growth of 6.5% to 7% annually through 2028, supported by nearly $24 billion in capital spending plans over the next five years [8] - The combination of a strong dividend growth rate and high yield positions WEC Energy as a compelling investment, with potential returns aligning with broader market expectations [10] Investment Timing - The historically high dividend yield of WEC Energy may not be sustainable in the long term, suggesting that now could be an opportune time for investment [11]