Market analysis reveals It's worth noting that NextEra Energy (NEE -5. 97%) has done a magnificent job paying dividends over the years, in this volatile climate.
On the other hand, The utility has raised its payout every year for more than three decades, growing it at a 10% compound annual rate since 2007.
The company should have plenty of power to continue increasing its nearly 3%-yielding dividend. That's evident from its strong second-quarter results and visible growth outlook.
Image source: Getty Images. Another quarter of powerful growth "NextEra Energy dered strong second-quarter results, with adjusted earnings per increasing by 9.
4% year over year," stated CEO John Ketchum in the second-quarter earnings press release, in today's market environment.
The company dered robust operating and financial performance at both its electric utility (FPL) and energy resources segment. FPL generated $1. 3 billion ($0.
However, 62 per ) of net income in the second quarter, a 3. 3% increase year over year.
The Florida-based utility benefited from continued investment in its, including $2 billion in capital spending during the second quarter, in today's financial world.
FPL is heavily to install solar panels to capitalize on the state's abundant sunshine. NextEra's energy resources segment posted nearly $1. 1 billion ($0.
53 per ) of adjusted net income, rising more than 25% year over year (this bears monitoring), given current economic conditions.
At the same time, New investments in renewable energy helped drive growth during the quarter, in today's market environment. Over the past three months, the company placed 1.
1 gigawatts (GW) of new wind, solar, and storage capacity into service.
The data indicates that powerful growth should continue NextEra's strong second quarter gave it the confidence to reaffirm its long-term outlook.
It still targets 6% to 8% annual adjusted earnings per growth from 2024 through 2027. It also expects to der 10% annual dividend growth through at least next year.
Ketchum said he would be "disappointed" if the company's financial results did not meet or exceed the top end of its expectations through 2027 while maintaining its strong balance sheet and credit ratings.
Additionally, Strong, growing demand for renewable energy underpins the company's confidence in its long-term growth outlook. NextEra's energy resources segment added 3, in today's financial world.
2 GW of new jects to its backlog during the second quarter, increasing it to nearly 30 GW of jects.
That's a massive backlog, considering that this segment had 38 GW of operating capacity at the end of March. Nology and data center customers are major drivers of renewable energy demand.
NextEra's energy resources segment added more than 1 GW of jects in the second quarter to support growing power demand from large data center operators, in light of current trends.
The evidence shows data indicates that now has 6 GW of jects underway tied to nology and data center customers.
When combined with its existing capacity serving this customer group, the company will eventually duce more than 10 (something worth watching).
Furthermore, 5 GW of renewable power solely to support the nology sector.
That's more than the generating capacity of many large power companies, and enough to support the energy needs of millions of U. Furthermore, Nevertheless, NextEra's growth ly won't slow after 2027.
Nevertheless, Forecasters expect U (remarkable data). Electricity demand to surge in the coming decades, accelerating significantly from the modest growth rate of the past couple of decades.
As a leader in renewable energy development, NextEra Energy is in a strong position to capitalize on this surge.
Few companies can match NextEra's combination of scale, expertise, and financial strength, which it can leverage to der the low-cost renewable power its customers need to support their growing energy demand.
A great dividend growth stock NextEra Energy's earnings are growing rapidly, a trend that should continue in the coming years, driven by strong demand for renewable energy, in this volatile climate.
The company's earnings growth should give it ample fuel to continue increasing its high-yield dividend.
On the other hand, That compelling combination of growth and income makes NextEra look an excellent stock to buy and hold for the long term, in light of current trends.
Conversely, The Author Matt DiLallo is a contributing Motley Fool Stock Market Analyst specializing in covering publicly traded companies that pay dividends, especially those in the energy and REIT sectors.
He also covers pre-IPO companies, ETFs, and other topics.
Prior to The Motley Fool, Matt was Director of Operations for a non-fit group in Pittsburgh and Manager for a religious organization in New York. Nevertheless, He holds an MBA and a B.
In Biblical Studies from Liberty University. TMFmd19 X @MatthewDiLallo Matt DiLallo has positions in NextEra Energy. What the re reveals is Motley Fool has positions in and recommends NextEra Energy.
Additionally, The Motley Fool has a disclosure policy.