NextEra Energy is one of the largest electric utilities in the country. It has two business platforms:
- Florida Power & Light (FPL): FPL is the country's largest electric utility, providing power to around 12 million people across Florida.
- Energy Resources: NextEra's energy resources segment is a leader in producing wind and solar energy. It also operates natural gas pipelines, electricity transmission lines, and renewable natural gas facilities.
NextEra Energy also owns a significant interest in XPLR Infrastructure (NYSE:XIFR). The partnership owns and operates renewable energy-generating facilities.
NextEra Energy's business segments generate stable cash flow from regulated rate structures and long-term contracts, supporting a dividend that yielded nearly 3% in mid-2026.
The company has all the qualities an investor would want in an electric utility. It routinely has one of the highest credit ratings among large, rate-regulated electric utilities. It also typically has a lower-than-average dividend payout ratio, giving NextEra the financial flexibility to invest in cleaner energy like natural gas and nuclear and to build more renewable power projects.
NextEra's current investment slate (an industry-leading $295 billion to $325 billion from 2025 to 2032) should expand its earnings by more than 8% annually through 2032. Notable projects include developing 2 GW of gas-fired generation and 2.6 GW of battery storage capacity for a data center campus as part of a $100 billion project with Brookfield (BAM -0.04%), which should commence operations in 2028. These investments support NextEra's plans to increase its dividend by at a 6% compound annual rate level in 2027 and 2028. That's above-average growth for the sector. It could help NextEra generate industry-leading total returns.
The utility took a significant step to accelerate growth by agreeing to buy fellow electric utility Dominion Energy (D +0.40%) in May 2026 for neary $67 billion. The deal will create the world's largest regulated electric utility business. The combined company would also be the world leader in renewables and battery storage, the top U.S. gas-fired power producer, the second largest U.S. nuclear power producer, and the country's largest utility by total generation, generation built, annual capex, rate base, and market capitalization. NextEra expects the merger, which should close in 12 to 18 months, to accelerate its earnings growth rate to more than 9% annually through 2032.
