While This Ultra-High-Yield Dividend Stock Is Making Progress, It Still Has Lots of Work to Do
NextEra Energy Partners (NYSE: NEP) is coming off the most challenging year in its history. The clean energy infrastructure operator lost nearly 60% of its value last year, pushing its dividend yield into the double digits. The company battled balance sheet and growth concerns, forcing it to launch a new strategy to shore up its financial profile while continuing to grow.
The renewable energy producer has already made solid progress on its plan. However, it still has a lot of work to do. Because of that, questions remain about the long-term sustainability of its high-yielding dividend.
Surging interest rates and a slumping stock price forced NextEra Energy Partners to pivot from its original strategy. The clean energy infrastructure company had planned to increase its dividend at a 12% to 15% annual rate through 2026. It aimed to power that growth by using low-cost funding to acquire income-producing renewable energy assets from its parent, NextEra Energy, and third parties.
Source Fool.com
