3 Reasons NextEra Energy Shares Could Soar in 2026

Core Viewpoint - NextEra Energy has underperformed the market over the past five years, with a return of only 8.3% compared to the S&P 500's 77.5% [1] Group 1: Stock Performance and Market Context - The disappointing stock return since February 2021 is attributed to the nature of utility stocks, which compete with bonds for yield-seeking investors, especially in a high-interest-rate environment [2] - Historically, NextEra has provided substantial returns, with a 1,700% increase since 2000, outperforming the tech-heavy Nasdaq Composite, which returned 415% in the same period [3] Group 2: Dividend Growth - NextEra's dividend has increased by 737% since 2000, significantly outpacing the 92% inflation rate during that time [4] Group 3: Industry Dynamics and Future Outlook - The company is experiencing a "unique moment" due to rising electricity demand driven by the AI revolution and energy-hungry data centers [5] - Electricity demand in America, which was previously stable, is now projected to surge, with data centers expected to consume as much electricity as Japan [6] - NextEra has a 95-gigawatt pipeline of new energy capacity, which could power over 83 million homes, compared to its current provision of electricity to 6 million households [7]