Workflow
Solar energy platform
icon
Search documents
The Utility Stock That's Actually Exciting
The Motley Foolยท 2025-12-03 08:15
Core Viewpoint - NextEra Energy is positioned to deliver exciting total returns, distinguishing itself from typical utility stocks through faster growth and a strong focus on renewable energy [1][6]. Group 1: Company Growth - NextEra Energy has achieved an adjusted earnings per share growth rate exceeding 10% on a compound annual basis over the past three, five, and ten years, significantly outpacing the low-to-mid single-digit growth of its utility sector peers [2][3]. - The company operates the largest electric utility in the U.S., Florida Power & Light, which benefits from being in a rapidly growing state and leveraging Florida's abundant sunshine for solar energy development [3][5]. Group 2: Market Position and Demand - NextEra Energy is well-positioned to capitalize on increasing power demand driven by AI data centers, new manufacturing facilities, and the growing adoption of electric vehicles [5][6]. - The company has a substantial backlog of renewable energy projects planned for completion in the coming years and is set to restart a dormant nuclear energy facility by 2029 [5][6]. Group 3: Financial Outlook - The company is expected to deliver approximately 8% annual earnings-per-share growth through 2027, alongside a double-digit increase in its dividend yield of 2.68% at least through next year [5][6]. - The anticipated growth in power demand, particularly from AI data centers, could further accelerate NextEra Energy's growth rate beyond 2027, enhancing its potential for robust total returns [6].