10 Reasons to Buy and Hold This High-Yield Utility Stock Forever

Core Viewpoint - NextEra Energy is positioned as an attractive investment in the utility sector, combining reliable dividend growth with opportunities in clean energy [1] Group 1: Market Position and Growth - NextEra Energy operates primarily through Florida Power & Light, benefiting from steady growth due to population migration in Florida [2] - The company has established itself as one of the largest providers of solar and wind power, aligning with the global shift towards cleaner energy sources [4] - NextEra has a significant pipeline of projects, with 28 gigawatts currently underway and an additional 300 gigawatts of potential opportunities, indicating long-term growth prospects in clean energy [9] Group 2: Dividend Growth and Financial Health - NextEra Energy has achieved a remarkable 10% annualized dividend growth over the past decade, appealing to dividend growth investors [5] - The company has a 31-year history of increasing dividends, providing a reliable income stream for conservative investors [6] - The current dividend yield stands at 3.2%, above the utility sector average of 2.8%, making it an attractive option for income investors [8] - Management forecasts continued dividend growth of 10% for 2025 and 2026, supported by expected adjusted earnings growth of 6% to 8% [10] - NextEra maintains a solid financial foundation with an investment-grade rated balance sheet and a reasonable dividend payout ratio of 66%, allowing for continued growth and resilience [11][12] Group 3: Demand and Market Trends - Overall energy demand in NextEra's markets is projected to increase by 55% from 2020 to 2040, supporting both clean energy initiatives and regulated operations [13] - The current political climate has created a buying opportunity, as NextEra's share price has been negatively impacted, leading to attractive yield levels [14]