The lure of stock trading has become stronger, with online broker dealers offering features such as zero commission trading. But some decisions regarding stocks to select need to be taken with strong analysis. Sometimes, you come across a stock that leaves you with no doubt.
How does renewable or clean energy figure as an investment option? There is certainly a lot of promise, but one stock might particularly be an attractive one – NextEra Energy Partners ($NEP). NextEra expects to gets its dividend yield pumped up. It is already at 3.9%, which is above the industry average, and it plans to raise it by a massive annual pace of 12% to 15% through 2024. By Q3 it was clear that company could fulfil that objective, thanks to the progress it has made. The company seems to be promising in terms of delivering high growth.
There was significant growth for NextEra Energy Partners in the past year, despite the cash flow of assets in connection with the bankrupt company PG&E ($PCG). Its primary source of growth was acquiring the renewable energy assets of parent company NextEra Energy. Both the companies joined in a deal worth $1.275 billion. They managed to add another solar power facility. The portfolio of NextEra Energy Partners also contained 10 new wind farms, all of which were added last fall. This spring saw further activity, with both the companies striking a $1.02 billion deal that added six more solar and wind facilities.
All these new assets helped the company earn an adjusted EBITDA of $104 million. There was also CAFD of $59 million earned during the company’s Q3. NextEra’s existing assets also displayed a great performance, and they boosted CAFD by $15 million and EBITDA by $13 million. This growth was largely powered by favorable wind conditions experienced in the third quarter. The wind resource contributed to 107% of long-term average.
And there are more high value acquisitions coming the company’s way, such as the $1.37 billion acquisition of Meade Pipeline Company.
When so many factors are in favor of a stock, it’s easier to make the decision. With zero brokerage trading there’s a significant motivation for you to start trading stocks. Get in touch with TradeZero, where you have many features to help you get started, at 1 954-944-3885 or email us at support@tradezero.co.
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