These High-Yield Stocks Are Making a Win-Win Deal to Enhance Their Dividends
NextEra Energy Partners (NYSE: NEP) has agreed to sell its Texas natural gas pipeline portfolio to Kinder Morgan (NYSE: KMI). The $1.8 billion all-cash deal is an important next step in NextEra Energy Partners' transition to a pure-play renewable energy producer. It will also give it the cash to retire some financing. Meanwhile, the acquisition will enhance Kinder Morgan's pipeline operations and grow its free cash flow.
It's a win-win deal for both companies, enhancing their ability to pay dividends. Here's a look at how they will both benefit from the transaction.
NextEra Energy Partners has been under tremendous pressure this year. The clean-energy infrastructure company has lost more than two-thirds of its value, and that has driven its dividend yield up into the double digits.
Source Fool.com
