Updated on February 20th, 2026 by Bob Ciura
Every year, Sure Dividend reviews the Dividend Aristocrats, which we consider to be some of the best stocks for investors seeking to build long-term wealth.
Companies who have attained Dividend Aristocrat status have met the following criteria:
Are a member of the S&P 500 index.
Have at least 25 consecutive years of dividend increases.
Meet certain size and liquidity requirements.
Membership in this group is very exclusive, as there are just 69 stocks on the Dividend Aristocrats list.
We have compiled a list of all 69 Dividend Aristocrats, along with important financial metrics such as price-to-earnings ratios and dividend yields. You can download the full list by clicking on the link below:
Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.
NextEra Energy, Inc. (NEE) is a Dividend Aristocrat since 2021 when it managed to hit the 25-year dividend growth goal. It has since continued to increase its dividend each year since.
This article will discuss NextEra Energy’s business model, growth prospects, and valuation to determine whether it is an attractive stock for income investors right now.
Business Overview
With a market capitalization of ~$191 billion, NextEra Energy has grown into one of the largest utility companies in the world since its founding in 1925.
The company consists of three operating segments: Florida Power & Light, NextEra Energy Resources, and Gulf Power. The Florida Power & Light and Gulf Power segments are rate-regulated electric utilities that serves over 5.8 million customer accounts in Florida.
NEE generates roughly 80% of its revenues from FPL. NextEra Energy is one of the largest generators of wind and solar energy in the world.
NextEra Energy reported its Q4 2025 financial results on 01/27/26. For the quarter, the company reported operating revenue of $6.5 billion (up 21% year over year), translating to adjusted earnings of $1.1 billion (up 3.5% year over year).
On a per-share basis, adjusted earnings climbed 1.9% to $0.54. The utility added ~3.6 GW of new renewables and storage projects to its backlog across ~1.7 GW of solar, ~1.2 GW of battery storage, and ~0.7 GW of wind.
The full-year results provide a bigger picture. For 2025, NextEra Energy reported operating revenue of $27.4 billion (up 10.7% year over year), translating to adjusted earnings of $7.7 billion (up 8.8%).
Adjusted earnings per share rose 8.2% to $3.71, exceeding the top end of its guidance. The utility added ~13.5 GW of new renewables and storage projects to its backlog, bringing its backlog to ~29.8 GW.
Growth Prospects
Between 2016 and 2025, NextEra Energy grew its EPS by 11.0% a year. The company’s future growth will be generated through organic investments and acquisitions.
For example, in January 2026, NEE closed the acquisition of Symmetry Energy, a leading U.S. natural gas supplier that serves ~5,500 large commercial and industrial customers and 80,000 residential and small customers across 34 states.
At the end of 2025, its backlog stood at ~29.8 GW. Its renewable and battery storage projects should help drive profits going forward. We use an EPS and DPS growth rate of 8.0% through 2031.
NextEra Energy benefits from several key factors that should enable the company to continue to grow. Its utility business is well-positioned to capture new customers as it resides in one of the largest states in the country.
Florida’s population also continues to grow, which should provide the company with the potential to increase its customer count, which should benefit its revenue growth in the future.
NextEra is also located in a state that is very constructive in its regulation of utilities. This allows the company to recover its investments in new projects quickly.
We expect the company to grow its adjusted EPS by 8% per year over the next five years.
Competitive Advantages & Recession Performance
Size and scale are NextEra’s biggest competitive advantages. No other company in the world can claim a larger renewable energy business than NextEra. A very large (and growing) customer base is an additional advantage.
The company regularly expands its massive scale via acquisitions, such as its 2019 purchase of Gulf Power from Southern Company, for $6.5 billion.
These acquisitions usually are immediately accretive for NextEra’s earnings-per-share, which creates significant value for shareholders, especially when additional synergies are captured over time.
Utility stocks are often viewed as reliable investments given the steadiness of their revenues and earnings. This makes these stocks especially attractive to investors in uncertain times.
NextEra Energy is no different and performed very well during the last recession. Listed below are the company’s earnings-per-share before, during, and after the last recession:
2006 earnings-per-share: $0.81
2007 earnings-per-share: $0.82 (1.2% increase)
2008 earnings-per-share: $1.02 (24.4% increase)
2009 earnings-per-share: $0.99 (2.9% decrease)
2010 earnings-per-share: $1.19 (20.2% increase)
NextEra Energy did suffer a slight drop in earnings-per-share in 2009, but overall, saw its bottom line grow quite a lot in the 2006-2010 time frame.
At the same time, the company’s dividend continued to grow each year.
Valuation & Expected Returns
Based on the expected adjusted earnings-per-share for 2026 of $3.92, NEE stock has a price-to-earnings ratio of 23.4 at current prices. We think a multiple of about 21 is fair.
A declining P/E ratio could reduce annual returns by -2.2% per year over the next five years.
Earnings growth and dividend yield will also contribute to total returns. We believe that the company’s extensive renewable portfolio, in addition to its growth prospects and competitive advantages, will allow NextEra to grow at a rate of 8% per year over the next five years.
Lastly, NEE stock currently yields 2.7%. In total, we expect that NextEra Energy will offer an annual return of 8.1% over the coming five years, which is attractive.
Final Thoughts
Investors should find a high number of positives in NextEra Energy. The company’s size, ability to thrive in recessionary times, and long dividend history are just three things we find attractive about the company.
NextEra Energy is also located in a state that we believe is very constructive in approving rate base increases. Florida’s population also continues to grow, which should provide additional customers.
The company also is adept at making solid additions to its core business through acquisitions. We expect that this will also be the case in future years as NextEra augments its organic growth with strategic additions.
Lastly, NextEra’s leadership position in the renewable energy space cannot be overstated. The company has a very large backlog that should provide for ample growth in the coming years.
With expected annual returns below 10%, NEE stock gets a hold rating.
Additional Reading
If you are interested in finding high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:
The Dividend Kings List: considered to be the best-of-the-best among dividend growth stocks, the Dividend Kings are a group of exceptional dividend stocks with 50+ years of consecutive dividend increases.
The Blue Chip Stocks List: contains stocks on either the Dividend Achievers, Dividend Aristocrats, or Dividend Kings list.
The Monthly Dividend Stocks List: contains stocks that pay dividends each month, for 12 payments per year.
The High Dividend Stocks List: high dividend stocks are suited for investors that need income now (as opposed to growth later) by listing stocks with 5%+ dividend yields.
The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:
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