NextEra Energy and South Bow highlighted for long-term dividend potential

Investors looking for long-term dividend growth are highlighting companies like NextEra Energy and South Bow as stable options for passive income.

NextEra Energy operates Florida Power & Light, the largest electric utility in the United States, and maintains a significant renewable energy business. The company has a backlog of approximately 35.1 gigawatts in renewable and battery-storage projects. Management expects adjusted earnings per share to grow at least 8% annually through 2032, with a target growth rate maintained through 2035. The company recently raised its quarterly dividend by 10%.

South Bow, a pipeline business spun out of TC Energy in 2024, offers a yield of approximately 5.8%. The company owns roughly 4,900 kilometers of liquids pipelines, including the Keystone Pipeline System, which connects Western Canadian oil production to United States refining markets. Much of the capacity is supported by long-term contracts, providing predictable cash flow that is less dependent on fluctuating oil prices.