The Ultimate Dividend Growth Stock to Buy With $500 Right Now (and It Isn't NextEra Energy)

Sometimes a great company isn't that great an investment because it trades hands at a premium price. That's the big story around NextEra Energy (NYSE: NEE), which is up a dramatic 15% or so in 2024, compared to a 10% gain for the average utility. In comparison, WEC Energy (NYSE: WEC) trades down a couple of percentage points and is an attractive, though out-of-favor, high-yield dividend growth stock.

Here's why WEC is the ultimate dividend growth stock to buy today if you have $500 (or more), available to invest.

With a market cap of around $26 billion, WEC Energy is not in the top tier of the U.S. utility sector, which is dominated by NextEra Energy and its huge $145 billion market cap. Being so large provides NextEra Energy with some material benefits, not the least of which is easy access to capital markets in a capital-intensive industry. But WEC Energy is hardly small. Note that utility Black Hills is a Dividend King, even though it only has a market cap of around $4 billion.

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Source Fool.com