2024-04-11 09:00:00 ET
Clean energy investment will be a multidecade opportunity as the world increasingly shifts away from carbon-based energy sources. That's the big story behind NextEra Energy Partners (NYSE: NEP) .
The problem is that sometimes a big story isn't enough to keep a company going. If you are looking at the ultra-high 11%-plus yield from NextEra Energy Partners today, you need to think well past the yield. Here's why.
NextEra Energy Partners is what is commonly known as a yieldco. It was specifically created to pay distributions to unitholders, but that has nothing to do with its actual corporate structure as a master limited partnership (MLP) . It is tied to its relationship with the utility NextEra Energy (NYSE: NEE) .
For further details see:
Is It Too Late to Buy Ultra-High-Yield NextEra Energy Partners Stock?