Two dividend stocks, NextEra Energy and Realty Income, offer steady income with strong dividend growth

From Yahoo Finance: 2025-05-03 18:13:00

NextEra Energy and Realty Income have impressive track records of dividend growth, with NextEra growing its dividend at a 10% compound annual rate over 20 years and Realty Income increasing its dividend 130 times since 1994. Both companies are expected to continue increasing their dividends, making them solid income stocks for investors.

NextEra Energy’s strong dividend growth is attributed to stable earnings from its utility and energy resources businesses, leading to a current yield of nearly 3.5%. Factors like rising power demand in Florida and growth in renewable energy drive opportunities for continued growth. The company expects to maintain a 10% annual dividend growth rate through at least next year.

Realty Income has a history of consistent dividend growth, raising its dividend 130 times since going public in 1994. The REIT collects stable rental income from a diversified portfolio of properties leased to leading companies like 7-Eleven and Walmart. Its low payout ratio and strong credit rating support continued growth in its dividend.

Both NextEra Energy and Realty Income are reliable dividend stocks with strong cash flow and balance sheets, enabling them to invest in growth and increase dividends. Investors seeking income can confidently buy these stocks this month for steady returns.

Read more: 2 No-Brainer Dividend Stocks to Buy for Income This May