5 Best Dividend Growth Stocks With 10%+ Yearly Increases

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

5-Year Average Annual Dividend Growth Rate: 18.3%
Years of Consistent Dividend Growth: 26

NextEra Energy, Inc. (NYSE:NEE) is an American energy company that invests in energy infrastructure across the US. At the end of December 2022, the company had over $1.6 billion available in cash and cash equivalents and its total assets amounted to nearly $13.5 billion. Its operating cash flow for the year came in at $8.2 billion.

In January, Guggenheim maintained a Buy rating on NextEra Energy, Inc. (NYSE:NEE) with a $96 price target, noting the company’s recent quarterly earnings. The firm also appreciated the company’s utility performance.

In the past five years, NextEra Energy, Inc. (NYSE:NEE) has raised its dividend at an annual average rate of 18.3%. It pays a quarterly dividend of $0.425 per share and has a dividend yield of 2.28%, as of February 1. The company’s strong dividend policy and a 26-year-long dividend growth streak make it one of the best dividend growth stocks.

The number of hedge funds tracked by Insider Monkey owning stakes in NextEra Energy, Inc. (NYSE:NEE) grew to 73 in Q3 2022, from 59 in the previous quarter. The collective value of these stakes is over $2.1 billion.

ClearBridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its Q3 2022 investor letter. Here is what the firm has to say:

“NextEra Energy, Inc. (NYSE:NEE) is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.”