Fintel reports that on September 28, 2023, JP Morgan downgraded their outlook for NextEra Energy Partners LP – Unit (NYSE:NEP) from Overweight to Neutral.

Analyst Price Forecast Suggests 150.28% Upside

As of August 31, 2023, the average one-year price target for NextEra Energy Partners LP – Unit is 76.44. The forecasts range from a low of 60.60 to a high of $90.30. The average price target represents an increase of 150.28% from its latest reported closing price of 30.54.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for NextEra Energy Partners LP – Unit is 1,573MM, an increase of 29.15%. The projected annual non-GAAP EPS is 2.57.

NextEra Energy Partners LP – Unit Declares $0.85 Dividend

On July 24, 2023 the company declared a regular quarterly dividend of $0.85 per share ($3.42 annualized). Shareholders of record as of August 4, 2023 received the payment on August 14, 2023. Previously, the company paid $0.84 per share.

At the current share price of $30.54 / share, the stock’s dividend yield is 11.19%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.11%, the lowest has been 2.83%, and the highest has been 7.63%. The standard deviation of yields is 0.83 (n=236).

The current dividend yield is 8.57 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 2.16. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.48%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 584 funds or institutions reporting positions in NextEra Energy Partners LP – Unit. This is a decrease of 30 owner(s) or 4.89% in the last quarter. Average portfolio weight of all funds dedicated to NEP is 0.50%, an increase of 0.83%. Total shares owned by institutions decreased in the last three months by 0.13% to 87,537K shares. The put/call ratio of NEP is 0.83, indicating a bullish outlook.

What are Other Shareholders Doing?

Neuberger Berman Group holds 4,119K shares representing 4.41% ownership of the company. In it’s prior filing, the firm reported owning 4,163K shares, representing a decrease of 1.08%. The firm decreased its portfolio allocation in NEP by 7.92% over the last quarter.

Jennison Associates holds 2,651K shares representing 2.84% ownership of the company. In it’s prior filing, the firm reported owning 2,760K shares, representing a decrease of 4.10%. The firm decreased its portfolio allocation in NEP by 17.50% over the last quarter.

Energy Income Partners holds 2,267K shares representing 2.43% ownership of the company. In it’s prior filing, the firm reported owning 1,917K shares, representing an increase of 15.45%. The firm increased its portfolio allocation in NEP by 9.34% over the last quarter.

Rare Infrastructure holds 2,179K shares representing 2.33% ownership of the company. In it’s prior filing, the firm reported owning 1,487K shares, representing an increase of 31.76%. The firm increased its portfolio allocation in NEP by 26.26% over the last quarter.

M&g Investment Management holds 2,171K shares representing 2.32% ownership of the company. In it’s prior filing, the firm reported owning 1,870K shares, representing an increase of 13.87%. The firm increased its portfolio allocation in NEP by 3.45% over the last quarter.

NextEra Energy Partners Background Information
(This description is provided by the company.)

NextEra Energy Partners, LP is a growth-oriented limited partnership formed by NextEra Energy, Inc. NextEra Energy Partners acquires, manages and owns contracted clean energy projects with stable, long-term cash flows. Headquartered in Juno Beach, Florida, NextEra Energy Partners owns interests in geographically diverse wind and solar projects in the U.S. as well as natural gas infrastructure assets in Texas and Pennsylvania.

This article originally appeared on Fintel

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