Is NRG Energy Stock a Buy?
NRG Energy (NYSE: NRG), having repositioned its business for the second time since the start of the new millennia, offers investors a generous 3.5% yield. Better yet, it has plans for 7%-to-9% dividend growth, which is material for a utility stock. But the story here isn't as simple as it seems -- and there are some important factors to consider before you jump aboard.
Without getting into too many details about old events, U.S. utility NRG Energy went bankrupt in 2003. That's not such a good backdrop, but this happened nearly 20 years ago. After emerging from court protection it started to rebuild, along the way buying up a merchant power company (in 2013) and building a renewable power business, hitting on what has been an important global theme.
In 2017 NRG Energy's GenOn unit (effectively the merchant power company it bought just a few years earlier) filed for bankruptcy and was handed over to creditors. Then in 2018 it sold its stake in NRG Yield, the renewable power business it built. While an oversimplification, NRG Energy basically emerged from its own bankruptcy, built some businesses that didn't work out as hoped, and had to go back to the drawing board -- again.
Source Fool.com
