2 Monster Stocks to Hold for the Next 10 Years

The energy sector is surging and will likely continue to do so for several more years as artificial intelligence (AI) integrates further into business and society and U.S. population density adds increasing pressure on the grid. Two monster stocks positioned to benefit from both are NextEra Energy (NYSE: NEE) and GE Vernova (NYSE: GEV).

For both growth and income investors, these companies offer a lot. From strong balance sheets to attractive growth prospects, these two energy stocks are burning bright in the power industry.

A utility and renewables gem

NextEra is experiencing the best of both worlds, with growing demand from AI and through Florida's population boom. NextEra owns and operates the regulated utility company Florida Power & Light (FPL). As a hybrid regulated utility and growing renewable energy business, NextEra is arguably the best-positioned energy provider in the country.

In the past 12 months, NextEra's stock has risen 27%. Currently, NextEra's forward P/E ratio is 23, significantly above the energy sector's average of 15. Overall, the stock is trading at a slight premium, which is justified by its long-term growth prospects.

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NextEra anticipates an earnings per share compound annual growth rate (CAGR) of more than 8% annually through 2032. The company also plans to increase dividends by 10% through 2026 and by 6% through 2028. NextEra has increased its dividend for more than 30 consecutive years.

Power and electrification charging GE Vernova's growth

GE Vernova became an independent entity in 2024, following General Electric's split into three companies: GE Aerospace, GE Healthcare, and GE Vernova. Since then, the stock has increased 600%, much to the delight of longtime GE investors.

GE Vernova has three main divisions: power, electrification, and wind. Power and electrification are driving all the profit and growth, while the wind segment is lagging.

GE Vernova's growth trajectory is steep, and the company expects it will continue through at least 2028. In 2025, GE Vernova reported $59.3 billion in total orders, a 34% increase from the year prior. The backlog also grew by $31.2 billion. Revenue for the full fiscal year was up 9%.

The results were so promising that GE Vernova increased its 2026 guidance. For the power division, the company expects revenue growth of 16% to 18% and electrification growth of 20%.

Most analysts rate GE Vernova a buy, with an average price target of $860. GE Vernova also recently doubled its quarterly dividend and reauthorized more shares for repurchase.

Slowing of AI-related spending is the biggest threat to NextEra and GE Vernova. Still, perhaps the most important reason to buy and hold both of these stocks is that they aren't speculative start-ups but can post growth numbers like an up-and-coming small-cap. Pair that with the value side, and these two companies are growing dividends and building moats that more closely resemble those of a blue chip company.

Even if the energy needs of AI fall short of current expectations, I don't believe it'll be enough of a slowdown to really adversely affect NextEra or GE Vernova. Both companies are financially sound, competitively advantaged, and well-diversified. I'd be surprised if they underperform the market over the next 10 years.

Catie Hogan has positions in NextEra Energy. The Motley Fool has positions in and recommends GE Aerospace, GE HealthCare Technologies, GE Vernova, and NextEra Energy. The Motley Fool has a disclosure policy.