3 Utility Stocks to Buy With $250 and Hold Forever

Core Viewpoint - Utility stocks provide substantial dividend income, stability for shareholders, and potential for long-term growth, making them an attractive investment option during market volatility [1][2]. Group 1: NextEra Energy - NextEra Energy is one of the largest energy conglomerates globally, with its subsidiary Florida Power & Light serving over 6 million accounts in Florida [3]. - The company is the largest producer of renewable energy from wind and solar and operates seven commercial nuclear power units in the U.S. [3]. - NextEra has a history of growth driven by the increasing demand for electricity and the transition to renewable energy sources, having paid and raised its dividend for 30 consecutive years, currently yielding 3.4% [4]. - Analysts project an average earnings growth of over 7% annually for NextEra, indicating strong potential for clean energy investments [5]. Group 2: Enbridge - Enbridge is a major player in North America's oil and gas transportation, operating gas utilities for approximately 3 million people across five U.S. states [6]. - The company has a diverse business model that includes renewable energy projects, providing a stable dividend yield of 6.2% and a history of 28 consecutive years of dividend increases [7]. - Enbridge is expected to generate annualized total returns of around 10% to 11%, primarily through dividends, offering shareholders consistent returns [8]. Group 3: American Electric Power - American Electric Power serves approximately 5.6 million people across 11 states and has the most extensive transmission network in the U.S., spanning over 40,000 miles [9][10]. - The company plans to invest $54 billion over the next five years to meet increased demand from data centers and economic development, anticipating earnings growth of 6% to 8% annually [10]. - With a solid initial yield of 3.5% and a history of 15 consecutive years of dividend increases, American Electric Power is projected to deliver long-term annualized total returns of around 9% to 10% [11].