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Buy NextEra Stock. It’s a Smart Bet on Green Energy, With a Rising Dividend Yield. - Barron's

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Buy NextEra Stock. It’s a Smart Bet on Green Energy, With a Rising Dividend Yield. | Barron's

NextEra Offers a Smart Bet on Green Energy and a Rising Payout

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While most of NextEra’s renewable generating capacity is in wind, much of its current backlog of 20 gigawatts is in solar and energy storage. Above, the company’s Sunshine Gateway Solar Energy Center in Wellborn, Fla. Kurt Rivers/NextEra Energy

Wall Street has been captivated by the growth potential of green energy, from wind and solar power to hydrogen, renewable fuels, and carbon sequestration. NextEra Energy offers a relatively low-risk green play, with a 2.7% dividend yield that’s rising.

Related Knowledge Center: ENERGY BASICS: renewables

State of Play

Renewable energy sources — once the fuel of the future, then practical in specific, narrow applications — are increasingly economic mainstream sources of power generation. Hydropower was long the mainstay of U.S. renewable electricity generation, although wind power surpassed hydro for the first time in 2019, and solar continues its rapid growth. The continued growth of wind and solar, with their fluctuations, is tied in part to improvements in storage technology: batteries.

More informationabout ENERGY BASICS: renewables