Where Will Ultra-High-Yield NextEra Energy Partners Stock Be in 5 Years?
Who wouldn't want to own an investment with a more than 13% yield that was also in a position to increase its disbursements by 6% a year? I'd think every income investor would consider backing up the truck to load up on such an asset. Given that the average annual return on the stock is around 10%, even growth investors would have to consider buying in.
Those levels of return are what NextEra Energy Partners (NYSE: NEP) is currently offering investors. But don't get too excited. There's trouble in this ultra-high-yield paradise.
If you look at NextEra Energy Partners in isolation, you'll miss the most important piece of the master limited partnership's (MLP) story. That's because it serves a very specific purpose for its parent, utility giant NextEra Energy (NYSE: NEE). NextEra Energy basically created NextEra Energy Partners for the sole purpose of having an MLP buyer for its renewable power assets. In the industry, these sales are called "drop downs."
Source Fool.com
MLP SE Stock
Our community is currently high on MLP SE with 3 Buy predictions and 0 Sell predictions.
As a result the target price of 10 € shows a very positive potential of 76.06% compared to the current price of 5.68 € for MLP SE.
