Why Investing $10,000 in NextEra Energy Today Might Just Be a Brilliant Move

Key Points

• NextEra Energy is a company with two businesses.

• The company's regulated utility operations are a reliable foundation.

• NextEra Energy's clean energy division is a growth machine.

• 10 stocks we like better than NextEra Energy ›

If you have $10,000 to invest, a great choice today is NextEra Energy (NYSE: NEE). That money would buy you around 135 shares of what is the largest publicly traded utility in the world, according to recent research by The Motley Fool. But buying NextEra Energy isn't a brilliant move because it is a big utility, it is because it's more than just a utility. Here's what you need to know.

Image source: Getty Images.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

What does NextEra Energy do?

NextEra Energy's core business is operating a regulated utility in the state of Florida. Florida Power & Light is one of the largest utilities in the United States. It has long benefited from migration to the Sunshine State. More residents means more paying customers. And more paying customers means more need for the capital spending that keeps supply and demand in balance while also ensuring reliability of service.

All of that's important because regulated utilities are granted a monopoly in the regions they serve, but the trade off is that they have to consent to government regulation. Simply put, a regulated utility has to get its rates and investment plans approved by the government. This generally leads to slow and steady growth as regulators balance customer costs with reliable supply and investor returns. The regulated utility business that NextEra Energy operates is a solid, though slow-growth, foundation.

There are lots of companies that fall into the regulated utility bucket. What sets NextEra Energy apart is that on top of this business it has built one of the world's largest solar and wind power companies. Other utilities have tried to do the same thing and fallen short. NextEra Energy, in contrast, has turned this business into a growth engine. This division currently operates around 39 gigawatts of capacity with another 30 gigawatts in its construction backlog. In other words, this division's growth is nowhere near over yet.

The proof of how valuable this combination has been for investors comes from NextEra Energy's dividend. Not only has it increased annually for more than three decades, but the annualized dividend increase over the past decade was a huge 10%. That's good for any company, but it is truly outstanding for a utility. In fact, half that rate of dividend growth would be considered very attractive for this sector.

NEE data by YCharts

Why buy NextEra Energy now?

The first reason to like NextEra Energy goes back to its growth as a business. The company has ample opportunity to expand on both the regulated and renewable power sides of its operation. And management expects that this will lead to earnings growth of between 6% and 8% a year through at least 2027. The dividend is projected to increase 10% a year through at least 2026.

The company is so confident in its outlook that management actually wrote "We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectations ranges through 2027" in a recent corporate presentation. That is a confidence-inspiring statement, but only because management has a history of achieving the kind of success it is predicting.

But opportunity for growth and dividend growth is just piece one of the story. The next important reason why you'll want to buy NextEra Energy today is because it looks like an attractive dividend stock, too. The current dividend yield is nearly 3.2%. The S&P 500 index (SNPINDEX: ^GSPC) is only yielding around 1.2% and the average utility's yield is 2.7%. If you are a dividend investor or a growth-and-income investor, NextEra Energy should be highly attractive to you.

NextEra Energy is a differentiated utility

NextEra Energy is not your typical utility, but that's exactly why the stock is so appealing today. Sure, you can find higher yields or stocks with higher dividend growth rates. But a relatively high yield and a high dividend growth rate are a rare combination. If you are looking for a utility, NextEra Energy should be at the top of your list. But it should probably be at the top of the list for anyone who just loves dividends, too.

Should you invest $1,000 in NextEra Energy right now?

Before you buy stock in NextEra Energy, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NextEra Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $648,369!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,089,583!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 15, 2025

Reuben Gregg Brewer 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.