2 brilliant energy stocks to buy now and hold for the long term

2 brilliant energy stocks to buy now and hold for the long term
2 brilliant energy stocks to buy now and hold for the long term

Energy is the lifeblood of our economy, powering everything from factories to homes to the data centers that power the next generation of artificial intelligence (AI). According to the bank of america Institute, an internal think tank of the bank of the same name, energy demand is expected to grow at a rate five times faster over the next decade than during the previous decade.

With energy demand set to increase in the coming years, here are two energy stocks you can buy with confidence today.

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NextEra Energy (NYSE: NEE) operates as one of the largest electric utility and renewable energy companies in the U.S. The company operates two primary businesses: Florida Power & Light (FPL) and NextEra Energy Resources.

FPL is the largest regulated utility in the US and provides NextEra with predictable profits. As a rate-regulated utility, FPL’s rates cover the cost of service while providing a reasonable rate of return on your invested capital. The Florida Public Utilities Commission approved a four-year rate agreement (January 2026 to December 2029) that gives FPL a regulatory allowable midpoint return on equity of 10.95%, providing stability and visibility into future earnings.

Meanwhile, NextEra Energy Resources is the world’s largest renewable energy company and focuses on the development and operation of renewable energy infrastructure, including wind, solar, nuclear, natural gas and battery storage. With approximately 37,505 megawatts (MW) of net generation capacity, this business provides NextEra with positive growth through long-term contracts.

For investors looking for stable long-term growth, NextEra is a solid option. Furthermore, investing in stocks offers investors both growth and income. The stock currently yields 2.74% and the company has increased its annual payout for 31 consecutive years.

With the stability of its utilities business and the growth potential of its renewables business, which will benefit from growing energy demand from technology companies, NextEra Energy is an excellent long-term investment.

Cheniere Energy (NYSE: LNG) is the largest U.S. producer of liquefied natural gas (LNG), a cooled form of natural gas that can be efficiently transported around the world. This fuel is considered a bridge fuel between traditional and renewable fuels because it emits up to 50% less carbon dioxide than coal.

Another benefit of this fuel is that gas-fired plants can run quickly to meet demand, complementing intermittent renewable sources such as wind and solar.

The company operates a highly contracted business model, with approximately 90% of its capacity sold under off-take contracts. Under these contracts, customers pay a fixed rate per MMBtu (metric million British thermal units) of LNG, and a portion of the rate is adjusted annually for inflation. This structure offers strong revenue stability, as customers must pay this fixed rate for contracted volumes, even if they choose to cancel or suspend their deliveries.

Cheniere essentially acts as a tollbooth for U.S. gas bound for Europe and Asia, as its pipelines connect the five major U.S. natural gas basins and serve as a gateway to international markets. In the last three years, 66% of its shipments have gone to Europe to replace Russian natural gas supplies.

For investors looking to capitalize on growing LNG production in the United States, Cheniere is another excellent stock to own for the long term.

Before you buy NextEra Energy stock, consider this:

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Bank of America is an advertising partner of Motley Fool Money. Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool positions and recommends Cheniere Energy and NextEra Energy. The Motley Fool has a disclosure policy.

Two Brilliant Energy Stocks to Buy Now and Hold for the Long Term was originally published by The Motley Fool

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