One of the largest electric utilities in the U.S., NextEra Energy (NYSE: NEE), is also the world’s largest generator of wind and solar power. The company has 18 gigawatts of wind and 4 gigawatts of solar generation capacity, in addition to a combined wind and solar projects backlog of 11 gigawatts. NextEra Energy’s stock has significantly outperformed its large utility peers in the last few years. Let’s take a closer look at the factors driving this outperformance as well as whether NextEra Energy can continue to outpace peers in the future.
NextEra Energy has delivered an impressive performance over the years. Its adjusted earnings per share (EPS) grew by 10.5% last year. In 15 years, NextEra grew its adjusted EPS at a compound annual growth rate (CAGR) of around 8.7%. During the same time frame, it grew its per-share dividend at a CAGR of around 9.6%. In addition to a steady growth in its regulated electric utility business, NextEra Energy has remarkably grown its competitive wholesale energy business.