14 Best Defensive Stocks to Invest In Now

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

The defensive strength of NextEra Energy, Inc. (NYSE:NEE) comes from its unique structure, which balances low-risk regulated income with high-growth infrastructure. Florida Power & Light, a subsidiary of the firm, is the safe half of the business. As the largest regulated utility in the US, it provides essential electricity to millions of Florida residents. Because its rates are regulated and its market is a monopoly, its cash flow is incredibly predictable and decoupled from the broader economy. Meanwhile, NextEra Energy Resources, another subsidiary, is the growth half. It is the global leader in wind and solar energy. By signing 20-year Power Purchase Agreements with blue-chip companies and other utilities, it locks in decades of guaranteed revenue, providing a defensive moat that most companies lack.

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Over the past few months, a new defensive catalyst has emerged: the massive electricity demand from AI data centers. Analysts at Bank of America and Morgan Stanley highlighted earlier this month that data centers are projected to drive a 12% compound annual growth rate (CAGR) in power consumption through 2035. As a leader in both renewable generation and battery storage, NextEra Energy, Inc. (NYSE:NEE) is the preferred partner for hyperscalers like Google and Microsoft who need massive, green, and reliable power. This has turned a traditional utility into a critical infrastructure play for the AI revolution.