This Energy Dividend Stock Is Deploying Profits... to Buy a Smart Home Company?
Energy companies have been reporting record profits in 2022, helped by inflation in the wake of the pandemic and years of underinvestment in infrastructure. Many of these companies have been reinvesting their windfall into new energy generation projects, renewable energy, and returning cash to shareholders via dividends and share repurchases.
NRG Energy (NYSE: NRG) has been doing the same. The utility company increased its dividend this year and announced a $1 billion share repurchase plan last December. But it just announced a new use for cash that investors were less than happy about: the acquisition of Vivint Smart Home (NYSE: VVNT). What gives?
NRG is an integrated utility providing electricity and natural gas to customers primarily in Texas, California, and a handful of other states. The bulk of the company's power plants is in Texas. Remember winter storm Uri? NRG came under fire from many customers for failed utility services during that ugly winter of 2021.
Source Fool.com
