Should You Forget NextEra Energy Partners?
NextEra Energy Partners (NYSE: NEP) offers a very alluring dividend these days. It yields more than 14%, putting it over 10 times higher than the S&P 500's dividend yield. Even better, the renewable energy producer expects to continue increasing its payout for at least the next few years.
However, there's a reason NextEra Energy Partners offers a sky-high dividend yield. The company might need to cut its monster payout in the future. Here's a look at whether you should forget about investing in the company right now.
NextEra Energy has had to revise its growth strategy in recent years due in part to the surge in interest rates. Higher rates have increased the company's cost of capital to the point where it can't refinance existing funding or secure growth capital at an attractive rate. That has forced the company to alter its plans.
Source Fool.com
