Could This 13.5% Yield Actually Be Safe?

The skeptics say no... Here's my take. [Shield] AN OXFORD CLUB PUBLICATION Loyal reader since April 2024 [Wealthy Retirement]( [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]( [Marc Lichtenfeld]( 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 [DIVIDENDS: No. 1 Way to Collect Passive Income]( If you want to get rich, passive income is the name of the game. Real estate is risky. "Side hustles" take work. But [dividend stocks are truly 100% passive!]( And while they might sound old-fashioned... They are the single best way to grab MORE INCOME - while you eat, sleep and vacation - month after month. Getting started couldn't be easier! To prove it, I'm giving you the Ultimate Dividend Package (FREE OF CHARGE). [Click here to get it for free.]( What is good, however, is NextEra's track record of raising its distribution. The company has done so every quarter since 2015. [Chart: An Impressive Streak of Distribution Raises: NextEra Energy Partners' quarterly distribution per share]( [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]( [Marc's Recent Winners]( [Investment U Conference 2025 - Ponte Vedra Inn & Club in Ponte Vedra Beach, Florida, March 30-April 2, 2025. Save $100 when you register by Oct 15! Reserve your seat today!]( BUILD AND PROTECT YOUR WEALTH [Top SIX AI Dividend Stocks Right Now]( [Unlock the Secrets to Safeguarding Your Wealth in 2025]( [Wall Street PROJECTS $30 Energy Stock Will Rise to $280 in 18 Months!]( [The World Faces Endless Problems... 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Here%27s Chief Income Strategist Marc Lichtenfeld%27s take.%0D%0A%0D [Push Alert]( [Push Alert]( SPONSORED [WATCH NOW: Multimillionaire Trader Wows Thousands With "One Ticker Payouts" Demonstration]( [One Ticker Payout]( Research found that smart investors could have made top gains of... - 443% in 11 days - 89% in 11 days - 543% in nine days - 88% in seven days. All by trading just one ticker every week! Sound preposterous? [SEE THE PROOF HERE]( [The Oxford Club]( 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.]( Please do not reply to this email as it goes to an unmonitored inbox. 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