Investing $1,000 Into This Top Energy Stock in October Could Grow to Over $2,800 by 2035

Core Insights - NextEra Energy has delivered an average annual total shareholder return of over 14% over the past 20 years, significantly outperforming other utilities and the S&P 500 [1] - The company is well-positioned to continue growing shareholder value, with projections indicating a $1,000 investment could grow to over $2,800 in the next decade [2] Earnings Growth - NextEra Energy has achieved a 9% compound annual growth rate in adjusted earnings per share over the past 20 years, enabling a 10% compound annual growth rate in dividends during the same period [3] - The utility has delivered a 14.8% annualized total return over the past decade, turning a $1,000 investment into $3,977, while a 20-year investment would now be worth over $12,150 [3] Future Earnings Outlook - The company expects adjusted earnings per share to grow at a 6% to 8% annual rate through at least 2027, with a conservative view that aims for growth at the top end of this range [4] - NextEra has significant visibility into its near-term earnings growth, supported by investments in its regulated electric utility, FPL, which is benefiting from Florida's growing population and solar energy initiatives [5] Investment in Renewable Energy - NextEra plans to invest $75 billion through 2028 in renewable energy, battery storage, and electricity transmission projects, which are expected to support strong earnings growth [6] - FPL is investing heavily in solar energy, with the largest utility-owned solar energy portfolio in the U.S. at over 7.8 gigawatts, and plans to deploy an additional 17 GW of solar capacity and 7.6 GW of battery storage within the next decade [9] Market Demand and Growth Catalysts - The demand for electricity in the U.S. is accelerating due to factors such as AI data centers, onshoring of manufacturing, and electric vehicles, which will drive demand for renewables and other energy sources [10] - Given these growth catalysts, NextEra Energy is expected to achieve adjusted earnings-per-share growth at or above its target range over the next decade [11] Dividend and Total Return Projections - NextEra Energy is projected to grow its earnings per share by around 8% annually through at least 2027, supporting ongoing increases to its 3% dividend [12] - Combining the dividend yield and growth rate positions NextEra to deliver an 11% average annual total return, potentially turning a $1,000 investment into over $2,800 by 2035 [12]