Why NextEra Energy Partners Stock Has Plunged 59% Since September
NextEra Energy Partners (NYSE: NEP) stock plunged 40.5% in September, according to data provided by S&P Global Market Intelligence. In an unexpected move, the renewable energy stock dramatically cut its dividend-growth outlook last month, leaving investors worried about the company’s growth prospects. The stock has continued its decline so far this month, and NextEra Energy Partners shares are now down a whopping 59% since September, as of this writing.
Until August, NextEra Energy Partners was confident of growing its dividend payout by 12% to 15% through at least 2026, driven primarily by potential acquisitions from its parent company, NextEra Energy, and third parties.
In September though, NextEra Energy Partners slashed its dividend-growth outlook to 5% to 8%, with a target of 6% through at least 2026. CEO John Ketchum blamed a “tighter monetary policy and higher interest rates” as affecting the company’s financing need to grow its dividends.
Source Fool.com
