This Ultra-High-Yield Dividend Stock Slams the Brakes on its Growth Plans
NextEra Energy Partners (NYSE: NEP) had bold plans to grow its already high-yielding dividend (currently over 8%) by 12% to 15% annually through 2026. However, that target has turned out to be overly ambitious. It assumed the company could continue to raise capital at attractive rates. That's no longer the case, given the surge in interest rates and the plunge in its stock price.
Those headwinds are causing the renewable energy stock to significantly reduce its distribution growth forecast. Here's a look at its revised plan and what that means for income-seeking investors.
NextEra Energy Partners is revising its dividend growth forecast to 5% to 8% annually through at least 2026, with a target growth rate of 6% annually. That's roughly half the growth rate previously anticipated.
Source Fool.com
