Despite the recent take-unders of 8Point3 Energy Partners LP (NSDQ: CAFD) and NRG Yield (NYSE: NYLD), we remain bullish on fellow yieldco NextEra Energy Partners LP (NYSE: NEP) for its capacity to grow its payout in the mid-teens annually and doesn’t find itself encumbered by a distressed sponsor.
NextEra Energy (NYSE: NEE) has stepped up to the plate repeatedly to support NextEra Energy Partners, restructuring its incentive distribution rights and taking additional equity in the yieldco to eliminate its need to issue equity on the public market.
The yieldco increased its dividend by 3.2 percent sequentially and has new projects that will add $50 million in cash available for distribution. Management extended its target for annual dividend growth of 12 to 15 percent through 2022.
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In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Feb. 25, 2021
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