This Magnificent Dividend Stock Continues to Add More Power to Its Growth Engine

Core Viewpoint - NextEra Energy has a strong dividend track record and is well-positioned for future growth, driven by its expanding energy resources segment and partnerships with major companies [1][11]. Group 1: Dividend Growth and Performance - NextEra Energy has increased its dividend every year for the past three decades, achieving a 10% compound annual growth rate over the last 20 years, resulting in total returns exceeding 15% annually [1]. - The company anticipates dividend growth of around 10% per year through at least 2026, supported by its growing earnings and low dividend payout ratio [8]. Group 2: Growth Drivers - NextEra Energy's energy resources segment has been a significant growth driver, owning a portfolio of power-generating assets that supply electricity under long-term, fixed-rate power purchase agreements [3]. - The company has partnered with Phillips 66 to build a 30.2-megawatt solar energy facility, which will provide stable cash flow and lower carbon intensity for Phillips 66's renewable fuels facility [4]. - In June, NextEra signed a deal to develop 4.5 gigawatts of solar and energy storage projects for Entergy, in addition to over 1.7 gigawatts already in development [5]. Group 3: Project Backlog and Future Expectations - NextEra Energy secured over 24 gigawatts of projects as of its third-quarter results, with expectations to complete 36.5 to 46.5 gigawatts of projects from 2024 to 2027 [7][8]. - The company plans to accelerate its development pace, projecting 14.1 to 17.1 gigawatts in 2024 and 2025, increasing to 22.4 to 29.4 gigawatts in 2026 and 2027 [8]. Group 4: Market Position and Opportunities - NextEra Energy is positioned to capture a significant share of the expected tripling of renewable energy capacity deployment in the U.S. over the next seven years, driven by increasing power demand from sectors like AI data centers and electric vehicles [9]. - The company is actively working with two Fortune 50 companies to potentially develop up to 10.5 gigawatts of renewable and energy storage projects by 2030 [6].