With a Major Headwind Shifting Directions, These 2 Dividend Stocks Could Soar in 2024

Soaring interest rates have been a major headwind for NextEra Energy (NYSE: NEE) and affiliate NextEra Energy Partners (NYSE: NEP). Higher rates have made it more expensive for companies to borrow money. In addition, rising rates weighed on the valuations of dividend stocks to drive up their yields and compensate investors for their higher risk profiles compared to alternatives like bonds.

Shares of NextEra have plunged more than 27%, while units of the partnership have cratered by nearly 60%. Those declines have driven up their dividend yields. (NextEra yields more than 3%, while the partnership's payout is over 11.5%.) 

However, interest rates could go from a headwind to a tailwind next year if the Federal Reserve cuts them, as many anticipate. That could lift the weight on their shares, causing them to soar in 2024.

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Source Fool.com