This 5.7%-Yielding Dividend Stock is Going All In on Renewable Energy to Power Growth
NextEra Energy Partners (NYSE: NEP) offers investors a high-yielding and rapidly rising dividend. The company's payout currently yields 5.7%. Meanwhile, it has been growing the dividend at a double-digit annual rate, which it expects will continue through at least 2026.
Until recently, NextEra Energy Partners' dividend relied on two fuel sources: natural gas pipelines and renewable energy. However, it recently unveiled a plan to completely power its dividend with renewable energy. Here's a look at that strategy shift and what's driving the move.
NextEra Energy Partners has an extensive portfolio of clean energy infrastructure assets. It has 7.6 gigawatts (GW) of wind energy capacity, 1.5 GW of solar energy, 240 megawatts (MW) of paired energy storage, and 4.3 billion cubic feet of natural gas pipeline capacity. These assets generate relatively steady cash flow backed by long-term contracts. The company distributes most of this cash to shareholders via its dividend.
Source Fool.com
