The Motley Fool Just Ranked the Biggest Utility Stocks. Here's Why No.

Core Viewpoint - NextEra Energy is positioned to potentially double its value in the coming years, driven by significant investments and a strong market presence in the utility sector [1][11]. Group 1: Company Overview - NextEra Energy is the largest utility stock by market capitalization, valued at over $150 billion, which is more than $30 billion larger than its closest competitor [1][3]. - The company's Florida Power & Light (FPL) serves over 6 million customers, making it the largest electric utility in the U.S. [3]. - FPL has built the largest utility-owned solar energy portfolio in the country, leveraging Florida's abundant sunshine [3]. Group 2: Financial Performance - NextEra Energy has achieved an 8.3% compound annual adjusted earnings-per-share growth rate since 2007, supporting nearly 10% compound annual dividend growth during the same period [5]. - The company has delivered total returns of 8.9% annually over the past 20 years, significantly outperforming its peers, which returned 3.6% [5]. Group 3: Future Growth Potential - NextEra Energy plans to invest $120 billion in U.S. energy infrastructure over the next four years, positioning itself as the top energy infrastructure investor [6][7]. - The company anticipates adjusted earnings per share growth at the top end of its 6% to 8% annual target range through at least 2027, along with around 10% annual dividend growth [7][8]. - U.S. electricity demand is projected to increase by 55% by 2040, necessitating the addition of 450 GW of new power-generating capacity by 2030, which favors NextEra Energy's growth strategy [9][10]. Group 4: Market Position and Strategy - NextEra Energy's substantial investments in renewable energy have solidified its position as the largest utility stock by market cap, with a strong outlook for future growth [11]. - The company is expected to secure a significant share of new capacity projects, driven by the anticipated surge in power demand and its leadership in renewable energy development [10].