NextEra Energy Partners: Buy, Sell, or Hold?

NextEra Energy Partners (NYSE: NEP) has increased its distribution annually for nine consecutive years. That puts it on the cusp of achieving the key milestone of a decade. At this point, management seems pretty confident that it will hit that target, projecting annual distribution growth of around 6% through 2026. So why is NextEra Energy Partners' yield 12.7%?

NextEra Energy Partners is a master limited partnership (MLP) controlled by parent NextEra Energy (NYSE: NEE). NextEra Energy Partners owns a large collection of renewable power assets, many of which it bought from its parent. This is an important relationship, as NextEra Energy Partners is really a funding vehicle for NextEra Energy.

Image source: Getty Images.

Source Fool.com