NextEra Energy (NEE 0.98%) has an elite growth track record. The utility has increased its dividend annually for more than a quarter of a century. It has grown its payout at a compound annual rate of roughly 9.9% over the last 15 years, which is incredibly fast for a utility. That has helped power it to strong total returns of 16.6% annualized over the past 10 years compared to 12.6% for the S&P 500.

Its focus on clean energy is powering the company's supercharged growth. It's a leading producer of electricity from the wind and sun. That strategy is delivering high-powered earnings growth, which should continue thanks to its growing backlog of new renewable energy development projects.

The high-powered growth continues

NextEra Energy recently reported excellent second-quarter results. The utility generated adjusted earnings of nearly $1.8 billion, or $0.88 per share. That was an 8.6% increase from the year-ago period. Meanwhile, its earnings during the first half were up 11% compared to the prior-year period. 

The company continues to benefit from the investments it has made in growing its two business segments. Earnings from its Florida electric utility, FPL, surged 14%, driven by customer growth and continued investments. FPL is spending billions of dollars to grow its solar energy generation capacity and build new electricity transmission and distribution infrastructure.

NextEra's energy resources segment grew its earnings by 11.4% year over year, mainly thanks to investments made in expanding its renewable energy production capacity. During the quarter, the company placed 1.8 gigawatts of new wind power, solar power, and storage capacity into service.

Energy resources also had another solid quarter of securing additional renewable energy developments. NextEra has added nearly 1.7 gigawatts (1,700 megawatts) of new projects to its backlog since it last reported earnings in April. The bulk of its new projects are for solar power (over 1.2 gigawatts). It also secured 150 megawatts of new wind energy projects and 300 megawatts of energy storage additions.  

Powerful growth remains ahead

NextEra Energy's solid start to 2023 kept it on track to achieve its full-year forecast. The utility expects earnings per share in the $2.98 to $3.13 range this year. 

The company also reaffirmed its longer-term financial expectations. Management foresees earnings per share growing to a range of $3.63 to $4.00 by 2026. That forecast implies 6% to 8% annual earnings growth, though the company expects earnings to grow at or near the top end of its guidance range through 2026. In addition, NextEra expects to increase its dividend by an annual rate of around 10% through at least 2024 from last year's base. 

NextEra Energy's extensive expansion project backlog gives it lots of visibility into its earnings growth potential. FPL expects to invest $32 billion to $34 billion through 2025, including $10 billion on new solar and $14 billion to $16 billion on transmission and distribution infrastructure projects. Meanwhile, the company's energy resources segment has about 20 gigawatts of renewable energy projects in its backlog and more under development.

The company has a lot more growth ahead. It has an ambitious plan to fully decarbonize FPL by 2045. It plans to build 92 gigawatts of new solar capacity, 50 gigawatts of new battery storage, and 16 gigawatts of green hydrogen capacity over the next two decades to support that plan and grow its earnings. NextEra Energy also sees a tremendous opportunity to help decarbonize the broader U.S. economy by building additional renewable energy capacity through its energy resources segments. Meanwhile, it's pursuing up to $20 billion of green hydrogen opportunities that could drive growth after 2026, and more than $40 billion of transmission projects.

An elite dividend growth stock

NextEra Energy is an outlier in the utility segment. The company is growing its earnings and dividend at above-average rates, powered by its renewable energy investment strategy. It sees tremendous investment opportunities ahead, which should help drive growth for years to come. That could give it the power to continue producing strong total returns, making it a great dividend stock to buy and hold for the long haul.