Dividend Aristocrats In Focus: NextEra Energy – Sure Dividend

Up to date on February twentieth, 2026 by Bob Ciura

Yearly, Positive Dividend opinions the Dividend Aristocrats, which we take into account to be among the greatest shares for buyers looking for to construct long-term wealth.

Firms who’ve attained Dividend Aristocrat standing have met the next standards:

• Are a member of the S&P 500 index.
• Have no less than 25 consecutive years of dividend will increase.
• Meet sure dimension and liquidity necessities.

Membership on this group could be very unique, as there are simply 69 shares on the Dividend Aristocrats listing.

We now have compiled an inventory of all 69 Dividend Aristocrats, together with necessary monetary metrics equivalent to price-to-earnings ratios and dividend yields. You possibly can obtain the complete listing by clicking on the hyperlink under:

Disclaimer: Positive Dividend shouldn’t be affiliated with S&P International in any manner. S&P International owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet is predicated on Positive Dividend’s personal evaluation, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the info on this article or spreadsheet is official knowledge from S&P International. Seek the advice of S&P International for official info.

NextEra Power, Inc. (NEE) is a Dividend Aristocrat since 2021 when it managed to hit the 25-year dividend progress purpose. It has since continued to extend its dividend every year since.

This text will focus on NextEra Power’s enterprise mannequin, progress prospects, and valuation to find out whether or not it’s a gorgeous inventory for earnings buyers proper now.

Enterprise Overview

With a market capitalization of ~$191 billion, NextEra Power has grown into one of many largest utility corporations on the planet since its founding in 1925.

The corporate consists of three working segments: Florida Energy & Mild, NextEra Power Assets, and Gulf Energy. The Florida Energy & Mild and Gulf Energy segments are rate-regulated electrical utilities that serves over 5.8 million buyer accounts in Florida.

NEE generates roughly 80% of its revenues from FPL. NextEra Power is likely one of the largest mills of wind and photo voltaic power on the planet.

NextEra Power reported its This autumn 2025 monetary outcomes on 01/27/26. For the quarter, the corporate reported working income of $6.5 billion (up 21% yr over yr), translating to adjusted earnings of $1.1 billion (up 3.5% yr over yr).

On a per-share foundation, adjusted earnings climbed 1.9% to $0.54. The utility added ~3.6 GW of recent renewables and storage initiatives to its backlog throughout ~1.7 GW of photo voltaic, ~1.2 GW of battery storage, and ~0.7 GW of wind.

The total-year outcomes present a much bigger image. For 2025, NextEra Power reported working income of $27.4 billion (up 10.7% yr over yr), translating to adjusted earnings of $7.7 billion (up 8.8%).

Adjusted earnings per share rose 8.2% to $3.71, exceeding the highest finish of its steering. The utility added ~13.5 GW of recent renewables and storage initiatives to its backlog, bringing its backlog to ~29.8 GW.

Development Prospects

Between 2016 and 2025, NextEra Power grew its EPS by 11.0% a yr. The corporate’s future progress will likely be generated by natural investments and acquisitions.

For instance, in January 2026, NEE closed the acquisition of Symmetry Power, a number one U.S. pure gasoline provider that serves ~5,500 giant business and industrial prospects and 80,000 residential and small prospects throughout 34 states.

On the finish of 2025, its backlog stood at ~29.8 GW. Its renewable and battery storage initiatives ought to assist drive income going ahead. We use an EPS and DPS progress price of 8.0% by 2031.

NextEra Power advantages from a number of key components that ought to allow the corporate to proceed to develop. Its utility enterprise is well-positioned to seize new prospects because it resides in one of many largest states within the nation.

Florida’s inhabitants additionally continues to develop, which ought to present the corporate with the potential to extend its buyer depend, which ought to profit its income progress sooner or later.

NextEra can also be positioned in a state that could be very constructive in its regulation of utilities. This enables the corporate to get better its investments in new initiatives shortly.

We anticipate the corporate to develop its adjusted EPS by 8% per yr over the subsequent 5 years.

Aggressive Benefits & Recession Efficiency

Dimension and scale are NextEra’s largest aggressive benefits. No different firm on the planet can declare a bigger renewable power enterprise than NextEra. A really giant (and rising) buyer base is a further benefit.

The corporate commonly expands its huge scale through acquisitions, equivalent to its 2019 buy of Gulf Energy from Southern Firm, for $6.5 billion.

These acquisitions often are instantly accretive for NextEra’s earnings-per-share, which creates vital worth for shareholders, particularly when extra synergies are captured over time.

Utility shares are sometimes considered as dependable investments given the stability of their revenues and earnings. This makes these shares particularly engaging to buyers in unsure instances.

NextEra Power isn’t any totally different and carried out very effectively over the last recession. Listed under are the corporate’s earnings-per-share earlier than, throughout, and after the final recession:

• 2006 earnings-per-share: $0.81
• 2007 earnings-per-share: $0.82 (1.2% improve)
• 2008 earnings-per-share: $1.02 (24.4% improve)
• 2009 earnings-per-share: $0.99 (2.9% lower)
• 2010 earnings-per-share: $1.19 (20.2% improve)

NextEra Power did undergo a slight drop in earnings-per-share in 2009, however general, noticed its backside line develop quite a bit within the 2006-2010 timeframe.

On the similar time, the corporate’s dividend continued to develop every year.

Valuation & Anticipated Returns

Primarily based on the anticipated adjusted earnings-per-share for 2026 of $3.92, NEE inventory has a price-to-earnings ratio of 23.4 at present costs. We predict a a number of of about 21 is honest.

A declining P/E ratio may cut back annual returns by -2.2% per yr over the subsequent 5 years.

Earnings progress and dividend yield can even contribute to whole returns. We consider that the corporate’s intensive renewable portfolio, along with its progress prospects and aggressive benefits, will permit NextEra to develop at a price of 8% per yr over the subsequent 5 years.

Lastly, NEE inventory at present yields 2.7%. In whole, we anticipate that NextEra Power will supply an annual return of 8.1% over the approaching 5 years, which is engaging.

Ultimate Ideas

Traders ought to discover a excessive variety of positives in NextEra Power. The corporate’s dimension, capacity to thrive in recessionary instances, and lengthy dividend historical past are simply three issues we discover engaging concerning the firm.

NextEra Power can also be positioned in a state that we consider could be very constructive in approving price base will increase. Florida’s inhabitants additionally continues to develop, which ought to present extra prospects.

The corporate is also adept at making strong additions to its core enterprise by acquisitions. We anticipate that this can even be the case in future years as NextEra augments its natural progress with strategic additions.

Lastly, NextEra’s management place within the renewable power area can’t be overstated. The corporate has a really giant backlog that ought to present for ample progress within the coming years.

With anticipated annual returns under 10%, NEE inventory will get a maintain score.

Extra Studying

In case you are taken with discovering high-quality dividend progress shares appropriate for long-term funding, the next Positive Dividend databases will likely be helpful:

• The Dividend Kings Record: thought of to be the best-of-the-best amongst dividend progress shares, the Dividend Kings are a bunch of outstanding dividend shares with 50+ years of consecutive dividend will increase.
• The Blue Chip Shares Record: incorporates shares on both the Dividend Achievers, Dividend Aristocrats, or Dividend Kings listing.
• The Month-to-month Dividend Shares Record: incorporates shares that pay dividends every month, for 12 funds per yr.
• The Excessive Dividend Shares Record: excessive dividend shares are suited to buyers that want earnings now (versus progress later) by itemizing shares with 5%+ dividend yields.

The most important home inventory market indices are one other strong useful resource for locating funding concepts. Positive Dividend compiles the next inventory market databases and updates them month-to-month: