Could This 13.5% Yield Actually Be Safe?

The skeptics say no... Here's my take. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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View in browser SPONSORED Announcing: The Gift Gap Trading Summit For the first time ever, superstar investor Bryan Bottarelli reveals a BRAND-NEW way to trade huge swings in stocks... UP or DOWN. During a FREE online event on Wednesday, October 2, he will reveal this powerful secret, LIVE and on-camera at 2 P.M. ET... Simply RSVP for FREE by clicking here. SAFETY NET Could NextEra Energy Partners' 13.5% Yield Actually Be Safe? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club Shares of NextEra Energy Partners (NYSE: NEP) came under a ton of pressure last September when the company said it would slow its annual distribution growth from an expected 12% to 15% per year to around 6%. Skeptics, including many Wall Street analysts, started yelping that the company was going to cut its distribution. (A distribution is essentially the same as a dividend - just with different tax ramifications.) It's been about a year, and so far, no cut. Because the stock dropped so dramatically, this partnership now yields double digits. Let's see whether investors have reason to be worried. The measure of cash flow that we use for NextEra Energy Partners is cash available for distribution, or CAFD. After a big fall from $584 million in 2021 to $364 million in 2022, NextEra's CAFD is on the rise again. It grew 89% last year to $689 million and is expected to reach $712 million in 2024. Last year, NextEra Energy Partners paid $741 million in distributions, or nearly $1.08 for every $1 in CAFD. We never want to see a company paying out more to shareholders than it's generating in cash flow. This year, the payout ratio will be even worse. The company is forecast to pay out $811 million in distributions for a payout ratio of 114% (or $1.14 in distributions for every $1 in cash flow). So that's not good. SPONSORED This New AI Technology Changes Everything THIS BREAKTHROUGH TECH makes Nvidia's new flagship Blackwell chip possible, featuring... The ONLY technology that can handle Blackwell's 20 quadrillion calculations per second A revolutionary data transfer rate that's double the industry standard An ultra-efficient solution, cutting energy usage in half. If you love investing in disruptive new companies... Then discover the little-known company behind this new AI technology. What is good, however, is NextEra's track record of raising its distribution. The company has done so every quarter since 2015. View larger image   The most recent distribution in August was $0.905 per share, which translates to a 13.5% annual yield. But again, the distribution is growing every quarter, so that yield will likely keep rising. The positives for NextEra's distribution are that cash flow is rising and the company has a stellar track record of raising its payouts to investors, along with a stated commitment to continuing to boost the distribution. However, the negative is that the payout ratio is too high. Is NextEra's excellent history of rewarding shareholders enough to make up for its troubling payout ratio? Find Out My Dividend Safety Rating Here BUILD AND PROTECT YOUR WEALTH Alex Finally Reveals His Personal Investments! See Where He's Investing $100K+ Unlock the Secrets to Safeguarding Your Wealth in 2025 Former CBOE Trading Legend Showed Members 246% Total Gains While the S&P Was Down 20% During the COVID Crash. Now He's Hosting a Free Class Revealing the Answer to Big Wins. Click for More! The World Faces Endless Problems... Hallelujah! MORE FROM WEALTHY RETIREMENT Is the American Dream Dead? Is Microsoft Still a "Buy" Near Its All-Time High? Fed Rate Cut Sets Stage for More Inflation Blackstone Secured Lending Fund: A "Rock-Solid" 10% Yielder? Facebook LinkedIn Email Share Push Alert SPONSORED Five Dividend Stocks to Buy Now (FREE INSIDE) Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... Completely free of charge! Seriously, no credit card required. Inside, you'll get the names and ticker symbols of his TOP FIVE dividend stocks right now, including... An "A"-rated, ultra-safe dividend stock with a huge 8% yield Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income And finally, his No. 1 dividend stock for a LIFETIME of income. Click here before the download link expires. You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our FAQs. Trying to reach us? Contact us here. 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