Anthropic Needs Gigawatts of Power It Doesn't Have. This Dividend-Paying Industrial Sells It.

Many investors have been flocking to energy names they think could help fill the massive power needs of artificial intelligence (AI) data centers. Those names include companies working to increase the capacity to produce fuel cells, develop advanced nuclear reactors, and even create small modular nuclear fission reactors.

Some of these AI labs and data centers are already in service and need steady, dependable power in the near term. One healthy, dividend-paying company is ready to help now and in the future. That company is NextEra Energy (NYSE: NEE). NextEra is much more than a power supplier to data centers, and it is positioned for multiple growth paths.

But its Energy Resources subsidiary is very well positioned to serve the AI power needs of hyperscalers and AI labs like Anthropic. The energy infrastructure company offers solutions across renewables, natural gas, battery storage, and nuclear power, allowing it to serve all customer needs.

Image source: The Motley Fool.

NextEra is going nuclear

Energy Resources reported adjusted earnings-per-share (EPS) growth of 18% in the most recent quarter. The expansion of its power generation and storage portfolio fueled that growth. More is to come, as well. The company added 3.6 gigawatts (GW) to its energy storage and generation backlog in the second quarter. That backlog now stands at over 35 GW, and is spread among wind, solar, gas generation, nuclear, and battery storage.

NextEra continues to add diversity to its mix. Earlier this month, it secured up to $1.9 billion in loans from the U.S. Department of Energy (DOE) to help restart its 615-megawatt nuclear facility in Iowa. NextEra shuttered the facility in 2020, but now has the support of both the federal government and the Iowa Utilities Commission for this additional generation capacity. NextEra plans to reactivate the reactor by early 2029.

NextEra Energy investors get growth and income

While NextEra continues to expand capacity, investors collect income that the company is optimistic will grow as well. Management sees about a 10% dividend increase this year, followed by 6% annual growth through 2028.

Additionally, the company targets at least 8% annual EPS growth through 2035.

While the business environment and NextEra's project backlog remain strong, the macroeconomic picture has led to a recent slump in the stock. This could be a good opportunity for investors. NextEra's dividend yield has grown to about 3.2% at recent prices.

NextEra Energy Resources' 35 GW project backlog will likely continue to grow even as some of those projects come online. With the stock trading at the lowest level in nearly a year, investors can now take advantage of that.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy.