NextEra Yields 2.8% Amid Solar's Historic Coal Crossover: 3 Clean Energy Buys

The historic shift in U.S. electricity generation—solar topping coal for the first time in May 2026—isn’t just an environmental milestone; it’s a green light for investors seeking dividend growth backed by structural tailwinds. NextEra Energy, with a 2.8% dividend yield and more than two decades of annual increases, stands at the center of this transition, especially after its deal to acquire Dominion Energy. For yield-focused portfolios, the lesson is clear: renewable energy dividends are no longer a speculative bet but a core allocation.

A historic milestone was reached in the U.S. electricity sector in May 2026: for the first time, solar power eclipsed coal as a source of electricity. According to recent data highlighted by The Motley Fool, solar supplied 12.8% of the nation's grid needs that month, edging past coal's 12.2%. Just five years earlier, solar accounted for a mere 5.4% while coal held a 19.7% share. This dramatic reversal underscores the accelerating energy transition that began with natural gas overtaking coal about a decade ago and now extends into a solar surge. The moment marks more than a symbolic crossing; it signals that renewable energy, particularly solar, is becoming a core pillar of the U.S. power mix, with profound implications for utilities, investors, and climate policy.

“

According to recent data highlighted by The Motley Fool, solar supplied 12.8% of the nation's grid needs that month, edging past coal's 12.2%.

The decline of coal has been steady and severe. From providing nearly half of America's electricity at the turn of the century, coal has been displaced by cheaper natural gas and, increasingly, by renewables. The oversupply of gas from the shale revolution made it the dominant fuel by 2016, and environmental regulations further pushed utilities to retire aging coal plants. Meanwhile, solar's ascent has been fueled by plunging panel costs, federal tax credits embedded in the Inflation Reduction Act, and corporate demand for clean power. The 7.4 percentage-point gain in solar's share over five years represents a near-doubling, and projections suggest continued rapid growth as grid-scale projects and distributed generation expand. The milestone is not merely nostalgic; it validates the business case for renewable energy at scale.

Against this backdrop, The Motley Fool identifies three dividend-paying stocks poised to benefit from the renewable revolution. NextEra Energy (NYSE: NEE) is a diversified utility giant that blends a stable regulated business with the world's largest solar and wind power producer. Its 2.8% dividend yield is backed by over 25 consecutive years of increases, and the company’s recent agreement to acquire Dominion Energy (NYSE: D) would further cement its position as one of the largest U.S. utilities, enhancing its clean energy portfolio and geographic reach. The deal, if completed, would create a behemoth with unmatched scale in both regulated and competitive generation markets, allowing NextEra to capture more value from the solar and wind expansion. Brookfield Renewable Partners (NYSE: BEP) and HA Sustainable Infrastructure Capital (NYSE: HASI) round out the trio. BEP operates a globally diversified renewable power portfolio with stable, contract-backed cash flows and a growing dividend, while HASI provides capital to sustainable infrastructure projects, earning yields from solar, wind, and energy efficiency assets. All three offer investors exposure to the energy transition with income upside.

The broader market implications are significant. The solar-coal crossover signals that renewable energy is no longer a niche but a mainstream power source, compelling traditional utilities to accelerate their decarbonization plans. This shift could lead to increased M&A activity, as seen with NextEra–Dominion, and higher capital flows into clean energy infrastructure. For fossil fuel interests, the decline in coal's share intensifies the urgency to pivot or face stranded assets. Policy tailwinds, such as extended tax credits and carbon-reduction mandates, further entrench solar's advantage. However, challenges remain, including grid interconnection bottlenecks, land-use conflicts, and the intermittency of solar power, which will require continued investment in storage and transmission.