Why NextEra Energy Partners Is a Dividend Investor’s Dream

NextEra Energy Partners

Every stock investor is on the lookout for the best investment opportunities. While good opportunities may pop up from time to time, it is rare to come across a goldmine like NextEra Energy Partners (NYSE: NEP). Let’s not look at this the wrong way; nobody is campaigning for NextEra. Those who have been in the stock market for a long time will tell that this is a golden opportunity. One of the key characteristics of the best dividend stocks is that they offer a meaningful payout on their cash flow. In some cases, a dividend of up to 70% can be paid out to investors. With that as a gesture of goodwill and better returns already, you will also find that such companies invest back the remaining amount into expanding cash flow. This means that, if you invest in a company that is willing to reward its partners and further invest in the future, you can sit back and relax knowing that your investments are safe.

The Right Option

If you are looking for such an opportunity, NextEra Energy Partners NEP presents just the right option. NEP looks like a dream come true for dividend investors. This is why you may have come across some critiques online warning against the scramble for NEP stocks. Well, there is nothing wrong with trading carefully and scrutinizing stocks before investing. However, it is also important to remember that stock markets are ruled by time. A few minutes of delay could cost you a fortune.

NextEra Energy Partner is a renewable energy company that has been on a steady growth since its establishment. Given that we are at a time in human history where for the first time, the world cares about the environment, it is not surprising to see NextEra causing such a buzz in the financial world. This renewable energy company now offer a yield of 4% which is way above the average stock. This is not the only reason dividend investors are scrambling for a piece of the cake. Prospects can only get better with NextEra offering to increase its dividend at a 12% annual rate on the lower end and 15% on the higher end through 2023.

There are more than enough reasons why you should invest in NextEra Energy Partner stocks if you are a dividend investor. Just to clarify some facts, let’s break down the details on why NextEra and how fast should you put your money in the fast-selling stocks.

A Strong Financial Foundation

To understand the amazing opportunity NEP offers, you need to look at the stats.  Since 2014, when the company was first listed on the NYSE, NEP has been able to increase its dividend to investors, by up to 140% overall. This is one of the highest dividend growth figures within that period.

About NextEra Energy Partner

Although the numbers look promising, many skeptical investors are yet to be convinced. If you do not understand the foundation of NEP, you may find it a bit complicated to track down its flourishing trade. NEP is a company that was founded by the Utility Giant NextEra Energy (NYSE: NEE). NEP was formed by NEE specifically for the purpose of facilitating renewable(sustainable) energy and expanding its reach to many parts of the world. This may explain why NEP has experienced tremendous growth. Although it entered the NYSE as a startup, NEP already had strong backing from big brother NEE. NextEra Energy has managed to boost the growth of NEP over the years by providing support for the growth in the energy sector. NEP sells most of its energy products to NEE— helping maintain cash within the same system.

Another factor to consider before investing in any dividend by based stock is the ability of the company to make more acquisition. Although NEP is an emerging company that has not been around for a short time, it plays its cards well. What NextEra Energy Partner does differently from other similar companies is offering a conservative ratio. Unlike its peers- who are yield-oriented- NEP covers its dividend 1.2 times more, giving a payout less than 80%. This coverage helps protect the company from being financially drained, leaving excess money to invest. If you are profits oriented, you may think it is a bad thing to hold back and invest. However, the more ardent dividend traders will tell you that a good company is one that has acquisition power. A company that can invest gives you a guarantee of a better tomorrow and the prospects keep on growing, according to the Balance.

The Umbrella Of A Big Brother

Although you may not be aware of it, as a NEP trader, you enjoy much more benefits than you should. NextEra Energy NEE plays an important role in the growth of NEP. NEE has enabled NEP to structure its deals in such a way that it continues growing at a high rate. A good example of the relationship would be the 1.275 billion deal between NextEra Energy (NYSE: NEE), NextEra Energy Partner (NYSE: NEP) and BlackRock(NYSE: BLK) in 2018. NEE managed to partner with NEP to get funding of over $750 million from BlackRock to be redeemed in the future. Such a single deal will help the partners get significant growth in their dividend without having to wait for growth opportunities like it is the case with other companies.

Besides the injection of funds and growth to NEP, the company still enjoys many other benefits as a partner with NextEra Energy. For instance, NEE has substantial renewable energy assets that can be brought on board in the future to boost the operations of NEP. If you are looking for an investment opportunity where you can be certain of the future, NextEra Energy Partner presents just the right opportunity. You can be sure that no matter what happens, NEP will stay around helping the planet find the right energy.

Conclusion

NextEra Energy Partner has exactly what you need as a dividend investor. If you need an investment opportunity that will make you feel comfortable and give you an assurance of better returns, give NEP the chance. With an expected annual growth rate of between 12% and 15%, you have every reason to put your money on one of the safest dividend trade stocks on NYSE.


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