Down More Than 20% in a Week, This Elite Dividend Stock is Looking Like a Screaming Bargain

NextEra Energy (NYSE: NEE) has gotten bludgeoned by the market over the past week. Shares of the leading utility have crashed more than 20% on news that its renewable energy-focused subsidiary, NextEra Energy Partners (NYSE: NEP), was cutting its dividend growth rate by roughly half. The culprit is the impact of surging interest rates on its cost of capital. That headwind is making it too expensive to use debt and equity funding to close drop-down acquisitions from its parent. 

This issue is causing concerns that NextEra might be unable to deliver on its long-term growth plan. However, the company recently proved that it has other ways to recycle capital than selling assets to its affiliate. So the recent sell-off makes shares seem like a screaming bargain.

NextEra Energy Partners recently caught investors off guard by revealing a significant change to its growth outlook. It slashed its projected dividend per share growth rate from an aggressive 12% to 15% annual target pace through 2026 to a much more moderate rate of 5% to 8% each year (with a target of 6%). 

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Source Fool.com