This Ultra-High-Yield Stock Sheds More Light on Its Revised Dividend Growth Plan

NextEra Energy Partners (NYSE: NEP) had an ambitious plan to grow its already high-yielding dividend by 12% to 15% annually through 2026. The company expected to power that strategy by completing more drop-down transactions with its parent, NextEra Energy (NYSE: NEE). It intended to fund those deals with low-cost debt and equity capital.

Unfortunately, surging interest rates threw a wrench in its funding plans. Because of that, NextEra Energy Partners slammed the brakes on its dividend growth plan, cutting its outlook to 5% to 8% per year through 2026, with a target of 6% annually. The company also planned to switch fuel sources from drop-downs to wind repowering projects. 

This abrupt change caused shares to crater nearly 70% from their 52-week high, driving its dividend yield into the double digits. That sell-off led the company to shed more light on its revised growth strategy to calm the market's concerns. 

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Source Fool.com