Is NextEra Energy Partners Stock a Buy?
The big theme in the global power market is the shift away from carbon fuels, putting NextEra Energy Partners (NYSE: NEP) in a great position to grow its clean energy-focused business. But Wall Street is pretty good at discounting the future, which helps explain the somewhat modest 3.7% distribution yield. Is that enough enticement to make NextEra Energy Partners worth buying?
NextEra Energy Partners is a master limited partnership controlled by U.S. utility giant NextEra Energy (NYSE: NEE). It owns a portfolio of eight natural gas pipelines, but its real focus is on owning renewable power assets like solar and wind farms. The partnership's 5.3 gigawatt renewable portfolio includes 4.6 gigawatts of wind power and 750 megawatts of solar. Meanwhile, the average contract length with its 50 or so customers is 15 years, providing plenty of consistency to the top line.
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Source Fool.com
