Should NextEra’s Dividend Hike and Data Center Push Reframe How NEE Investors View Its Growth Engine?

NextEra Energy recently increased its quarterly dividend by 10% and aims for annual dividend growth of approximately 10% through 2026, dropping to 6% from 2027 to 2028. This move, coupled with management’s ambitious goal of 8% annual EPS growth through 2035 driven by data center and AI power demand, signals the company’s strategy to align shareholder returns with rising electricity consumption. However, investors should consider potential challenges such as higher interest costs and regulatory changes that could impact these growth projections.