2024-03-04 07:02:00 ET
Last year was brutal for NextEra Energy Partners (NYSE: NEP) . The clean energy infrastructure company lost more than half its value as surging interest rates impacted its ability to fund its business and growth. That shellacking has pushed its dividend yield into the double digits.
I recently decided to take advantage of the sell-off by buying a few more shares of the renewable energy producer. While there's a near-term risk that it might need to reduce its big-time dividend, I think it has tremendous total return potential in the coming years.
NextEra Energy's cost of capital surged last year because of rising interest rates and its sagging stock price. That had a significant impact on the company. It couldn't get new funding at an attractive rate to refinance maturing debt, buy back the convertible equity portfolio financing (CEPF) it used to make acquisitions, or make new acquisitions.
For further details see:
Why I Recently Bought More of This Beaten-Down Ultra-High-Yielding Dividend Stock