With Shares Down Nearly 70%, I'm Piling Into this Ultra-High-Yield Dividend Stock
NextEra Energy Partners (NYSE: NEP) has gotten the wind knocked out of its sails in recent years. The renewable energy stock has crashed nearly 70% from its peak in early 2022, pushing its dividend yield up to around 13%. A big factor driving the decline has been rising interest rates.
I've been steadily adding to my position in the high-yielding renewable energy stock, including recently buying more shares at a nearly 70% discount to the peak price. Here's why I think NextEra Energy Partners could generate strong total returns from here.
The primary issue weighing on NextEra Energy Partners' stock has been the impact of higher interest rates on its ability to grow. They've made it more expensive for the company to borrow money to finance new investments and refinance existing funding, including the scheduled buyouts of convertible equity portfolio financing (CEPFs). That has forced the company to make two notable strategy shifts:
Source Fool.com
