10 Companies that Just Raised their Dividends

3. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 84

NextEra Energy, Inc. (NYSE:NEE) is an American renewable energy company, headquartered in Florida. The company generates, transmits, and sells electricity. It announced a 14% hike in its quarterly dividend on February 14 and now offers a quarterly dividend of $0.5665 per share. Through this increase, the company took its dividend growth streak to 29 years, which makes it one of the stocks that raised their dividends. Its solid cash flow enables these distributions, with the company generating more than $13.2 billion in operating cash flow during fiscal 2024. Looking ahead, it aims to increase its dividend per share by approximately 10% annually through at least 2026, using its 2024 payout as the baseline. The stock has a dividend yield of 3.26%, as of March 6.

NextEra Energy, Inc. (NYSE:NEE) has generated strong returns, surging by nearly 27% in the past 12 months, as of the close of March 5. The company primarily functions as a regulated utility, providing a steady and predictable revenue stream. Its Florida-based utility business operates as a monopoly within its service areas, though any proposed capital investments or rate adjustments require regulatory approval.

Beyond its utility operations, NextEra Energy, Inc. (NYSE:NEE) generates reliable cash flow through its clean energy segment, which operates under long-term contracts. With demand for renewable energy on the rise, the company is aggressively expanding this division. Management aims to grow its renewable energy capacity from the current 36 gigawatts to 46.5 gigawatts by 2027, a move that could nearly double the business in the coming years.