- FPL invests in both midstream companies and electric utilities, which are both likely to see growth over the coming years.
- Midstream's growth is being driven by growing fossil fuel demand while utilities' growth is being driven by electrification.
- The fund is not as diversified as I would like, with a large percentage of its assets tied up in only a few companies.
- The fund appears to be overdistributing, although 2020 also was an exceptional year.
- The fund yields an impressive 9.2% yield and trades at a huge discount but that NAV history is concerning.
For further details see:
FPL: Interesting Fund That Seems To Tick The Right Boxes, But NAV Destruction Worrying