97% Is a Troubling Number for NextEra Energy Partners
If you're in search of ultra-high yield stocks, then NextEra Energy Partners (NYSE: NEP) has probably popped up on your radar screen. The clean-energy-focused master limited partnership (MLP) has a huge 13.5% distribution yield.
However, yields don't usually get that high without a good reason. Here's why you might want to tread with caution if you're considering buying NextEra Energy Partners.
On the surface, NextEra Energy Partners is a master limited partnership (MLP) that owns and builds clean energy assets, like solar and wind power. MLPs are pass-through entities designed to create material income streams for unitholders that often allow for the deferral of taxes because things like depreciation "pass through" to unitholders. So it isn't shocking that NextEra Energy Partners has a high yield. However, 13.5% is very high, even for an MLP.
Source Fool.com
MLP SE Stock
Our community is currently high on MLP SE with 3 Buy predictions and 0 Sell predictions.
As a result the target price of 10 € shows a very positive potential of 76.06% compared to the current price of 5.68 € for MLP SE.
