5 Best Green Stocks To Invest In 2024

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

Number of Hedge Fund Holders: 65

NextEra Energy, Inc. (NYSE:NEE) produces, delivers, and sells electricity to both retail and wholesale customers across North America. Their electricity generation comes from a variety of sources, including wind, solar, nuclear, natural gas, and other forms of clean energy, placing it among the best clean energy stocks.

On February 16, NextEra Energy, Inc. (NYSE:NEE) declared a $0.515 per share quarterly dividend, a 10.2% increase from its previous dividend of $0.468. It is to be paid on March 15 to shareholders on record as of February 27.

According to Insider Monkey’s fourth quarter database, 65 hedge funds were bullish on NextEra Energy, Inc. (NYSE:NEE), up from 58 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors held the largest position in the company, with 3.9 million shares worth $237.21 million.

ClearBridge All Cap Value Strategy made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2023 investor letter:

“Many businesses are threatened by a higher cost of capital, but one where reality has set in, and which also touches many other growth areas of the market, is the utility company NextEra Energy, Inc. (NYSE:NEE). Over the past few years, the company developed into a growth darling thanks to its strong track record in renewable energy development and tailwinds from the global energy transition and incentives in the Inflation Reduction Act. The problem for NextEra, and the transition broadly, is that this transformation is immensely capital intensive and many renewables projects offer lower returns on that capital. This requires high capital expenditures – often resulting in negative free cash flow – to meet the growth and financing needs of companies like NextEra. To help, the company leaned on financial engineering by using a publicly traded limited partnership called NextEra Energy Partners, providing further capacity for its parent to continue its development plans. NEP used layers of its own financial engineering to fund its own negative free cash flow and a large, growing dividend yield that we believe it could not sustain organically. Ultimately, the higher cost of debt from rising rates led NEP to lower its own growth ambitions, driving concerns about whether NextEra can execute on its extensive backlog. As a result, the stock has declined by approximately 30% year to date.”