This High-Yielding Renewable Energy Stock Significantly Enhances Its Dividend Growth Plan
NextEra Energy Partners (NYSE: NEP) already had enough power to achieve its ambitious dividend growth strategy until 2022. However, that didn't stop the renewable energy producer from taking advantage of an opportunity to enhance its portfolio and balance sheet via a series of creative transactions with its parent NextEra Energy (NYSE: NEE) and private equity giant KKR (NYSE: KKR). As a result, it will have even more power to fulfill its plan to grow its 3.6%-yielding dividend by 12% to 15% per year through at least 2024.
NextEra Energy Partners will acquire a 40% interest in a 1 gigawatt (GW) portfolio of renewable energy assets from NextEra Energy. The assets include three wind farms located in Texas, Oklahoma, and Kansas and four solar energy facilities in Florida, Arizona, and Maine. Meanwhile, it's also purchasing 100% of a 100 MW solar-plus-storage project in Arizona from NextEra Energy. The company is paying about $320 million for these assets, which should contribute $75 million to $85 million in annual adjusted EBITDA and $24 million to $29 million of cash available for distribution (CAFD).
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Source Fool.com
