We recently published a list of 10 Best Widow and Orphan Stocks To Invest In. In this article, we are going to take a look at where NextEra Energy, Inc. (NYSE:NEE) stands against other best widow and orphan stocks to invest in.

Investing in the stock market can be a prudent strategy for widows and orphans seeking financial stability and growth. Widow-and-orphan stocks are typically associated with established companies in sectors like utilities and consumer staples. These companies often provide consistent dividend payments, offering a reliable income stream. This stability is particularly valuable during economic downturns, as these stocks tend to exhibit lower volatility compared to high-growth equities. Investing in stable, dividend-paying stocks can aid in preserving and growing wealth over time. The combination of regular dividend income and potential capital appreciation makes these stocks suitable for individuals aiming for sustainable financial growth without excessive risk exposure.

Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.

A study published in July 2024 highlights the critical role of financial literacy in investment decisions and stock market participation. The research indicates that increased financial knowledge enhances investment confidence and decision-making, underscoring the importance of targeted financial education programs to empower individuals to participate effectively in the stock market. Recent trends show that women, particularly baby boomers, are increasingly controlling significant amounts of wealth. As of January 2025, women over 60 control $8 trillion of liquid wealth assets. This shift underscores the importance of financial literacy and proactive investment strategies among women to ensure long-term financial security.

Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we made a list of large and mega-cap stocks with impressive dividend profiles. From this dataset, we chose companies with strong fundamentals that have shown resilience during rough macroeconomic conditions in the past. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 69  

NextEra Energy, Inc. (NYSE:NEE) transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company reported a GAAP net income of $1.203 billion ($0.58 per share) for the fourth quarter of 2024, from $1.210 billion ($0.59 per share) in the same quarter of the prior year. In January, the company reaffirmed its long-term financial expectations, guiding adjusted earnings per share to range from $3.45 to $3.70 in 2025, $3.63 to $4.00 in 2026, and $3.85 to $4.32 in 2027. NextEra also confirmed its funding plan for 2024-2027 remains unchanged, with $5 billion to $7 billion in equity units and $5 billion to $6 billion from asset recycling.

Overall, NEE ranks 3rd on our list of best widow and orphan stocks to invest in. While we acknowledge the potential of NEE as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than NEE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.