Can NextEra (NEE) Preserve Its Earnings and Dividend Growth While Adding Dominion?

NextEra Energy (NEE) has set its 2026 growth targets, as the company moves forward with its plans to acquire Dominion Energy Inc (NYSE:D). The $67 billion all-stock transaction aims to close before the year's end, potentially making NextEra the largest U.S. electricity producer. Both companies' growth is already strong, and the deal's value for investors depends on securing regulatory approvals and successfully integrating Dominion assets.

NextEra reaffirmed its guidance for adjusted EPS of $3.92 to $4.02 for 2026, with targets at the upper end of that range. The company expects adjusted EPS to grow at least 8% annually through 2032, targeting the same growth rate through 2035. NextEra also plans to continue raising dividends, targeting a 10% annual growth rate through 2026, increasing to 6% through 2028.

The EPS and dividend growth projections offer investors a foundation for evaluating the Dominion deal. NextEra anticipates Dominion to immediately increase adjusted EPS, with the combined company expected to achieve 9%+ growth through 2032 and maintain the same growth rate through 2035. The merger would create the largest natural gas-fired generation fleet in the U.S. and the second-largest nuclear fleet.

However, the deal's success hinges on obtaining regulatory approvals and integration efficiency. Significant near-term tests include gaining approval from Virginia regulators and shielding customers from grid costs associated with AI data centers. While insider information suggests elite investors are watching NextEra's growth prospects, major funds hold mixed views, with some increasing stakes and others shorting the stock.