NextEra Energy Partners (NYSE:NEP). All three offer above-average current yields and attractive growth forecasts.
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Plenty of power to continue the upward trend
Brookfield Renewable has a long history of growing its dividend and outperforming the market. Since its inception about 20 years ago, the hydroelectricity producing giant has increased its dividend at a 6% compound annual rate. That s helped power market-crushing total yearly returns of 19% compared to just 6% for the S&P 500 during that timeframe.
The company should have plenty of power to continue growing its dividend in 2021 and beyond. Brookfield currently anticipates that a combination of higher power rates, cost reduction initiatives, and renewable energy development projects will enable it to grow its cash flow per share at a 6% to 11% annual rate through at least 2025. On top of that, it believes that acquisitions can add another 4% to 5% to its bottom line each year. That supports its
Source: CNN Money
#1. Algonquin Power & Utilities
Algonquin Power & Utilities Corp. (NYSE:AQN) owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in the United States and Canada. Algonquin controls 3 gigawatts of contracted renewable energy and serves 2.7 million regulated electric, water and natural gas utilities customers. While those numbers pale in comparison to NextEra’s, which will bring 3.2 GW of new renewable energy storage into service in 2020 alone, Algonquin’s fairer valuation is a key attraction.
Indeed, Algonquin’s valuation of 20x expected next 12 months earnings is one third less than NEE’s while its dividend yield of close to 4% is twice NextEra’s, despite the two companies having a very similar annual payout growth rate of 10%.
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NextEra Energy Partners, LP with ticker code (NEP) now have 19 analysts in total covering the stock. The consensus rating is ‘Buy’. The range between the high target price and low target price is between 81 and 57 calculating the average target price we see 70. With the stocks previous close at 64.03 this indicates there is a potential upside of 9.3%. The day 50 moving average is 64.17 and the 200 day MA is 60.09. The company has a market cap of $4,690m. You can visit the company’s website by visiting: http://www.investor.nexteraenergypartners.com
NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States. It owns a portfolio of contracted renewable generation assets consisting of wind and solar projects, as well as contracted natural gas pipeline assets. The company was founded in 2014 and is headquartered in Juno Beach, Florida.
Author Bio
Matthew is a senior energy and materials specialist with The Motley Fool. He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries: Follow @matthewdilallo
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Annual Results Announcement for the year ended 30 September, 2020 This announcement contains regulated information. Ecofin Global Utilities and Infrastructure Trust plc (the Company ) is an authorised UK investment trust whose objectives are to achieve a high, secure dividend yield on a portfolio invested primarily in the equities of utility and infrastructure companies in developed countries and long-term growth in the capital value of the portfolio while preserving shareholders capital in adverse market conditions. The information contained in this Annual Financial Report Announcement has been prepared in accordance with International Financial Reporting Standards ( IFRS ) as adopted by the European Union ( EU ) and as applied in accordance with the provisions of the Companies Act 2006 (the Act ). These comprise standards and interpretations of the International Accounting Standards ( IAS ) and Standing Interpretations Committee as approved by the Inte