3 Reasons NextEra Energy Shares Could Soar in 2026

Over the past 5 years, shares of Florida-based inferior institution NextEra Energy (NYSE: NEE) person severely lagged the markets. In a agelong successful which the S&P 500 (SNPINDEX: ^GSPC) returned 77.5%, NextEra shares roseate conscionable 8.3%.

While the stock's instrumentality since February 2021 is disappointing to investors, it shouldn't beryllium surprising. Utility stocks, which are mostly antiaircraft successful nature, thin to vie with bonds for the favour of yield-seeking investors with small appetite for risk. Therefore, precocious involvement rates person held backmost the assemblage that The New York Times erstwhile called "widow and orphan stocks" due to the fact that of their absorption to economical downturns.

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Interestingly, The New York Times shared that appraisal successful the outpouring of 2000-- and successful the 26 years since, NextEra shares haven't conscionable been bully for risk-averse people. They've been bully for everybody, returning 1,700% portion the dividend roseate each year. Strikingly, the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) has returned conscionable 415% successful that clip frame.

Meanwhile, its dividend was nary slouch, either. Since 2000, it's risen by 737%, good supra the 92% ostentation complaint successful that clip span.

Over the agelong term, NextEra has proven to beryllium thing genuinely rare: a defensive, high-income play that besides behaves similar a high-growth tech stock. And determination are 3 reasons to deliberation its aged individuality is starting to reassert itself.

If you've noticed your energy bills rising lately, it's not conscionable you. In the company's Q2 2025 net telephone 9 months ago, CEO John Ketchum pointed to America's surging energy demand, which is driven successful ample portion by the planetary artificial quality (AI) gyration and its energy-hungry information centers.

Ketchum called this "a unsocial moment" due to the fact that for decades, energy request successful America was mostly constant. In the property of AI, successful which information centers are projected to soon devour arsenic overmuch energy arsenic Japan, a federation of 125 cardinal people, that's nary longer the case.

Utility companies are, of course, regulated successful the terms increases they tin impose. In an manufacture wherever nett margins are restricted, companies tin turn net by selling overmuch much of their product. NextEra present has a 95-gigawatt pipeline of caller vigor capacity, which could powerfulness implicit 83 cardinal homes. For context, it provides energy to 6 cardinal households today.