NextEra Energy Poised to Benefit from Clean Energy Boom But Faces Macroeconomic Headwinds
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NextEra Energy (NEE) is a leading renewable energy utility well-positioned to benefit from the AI boom and rising energy demand from data centers.
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NEE offers strong dividend growth, having grown its dividend by 11% annually since 2013, and currently yields 3.2%.
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The company has a track record of meeting or exceeding financial expectations for 14 straight years thanks to its dominance of clean energy and largest electric utility status.
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However, the entire utilities sector faces challenges like rising costs and inflation that have impacted profitability and growth.
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NEE expects to continue growing EPS by 6-8% annually through 2026 but higher interest rates could hurt growth plans and leverage.