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Prediction: This Ultra-High-Yield Stock Will Eventually Cut Its Dividend
NEPNextEra Energy Partners(NEP) The Motley Fool·2024-08-20 17:47

A double-digit yield is often a big red flag signaling that a cut is forthcoming. NextEra Energy Partners' (NEP 0.12%) dividend currently yields more than 14%. That's 10 times higher than the S&P 500's dividend yield. While a dividend yield in the double digits might seem alluring, it usually signals that the market doesn't believe that the payout's current level is sustainable. I agree with the market that this renewable energy dividend stock will eventually cut its big-time payout. Here's why I predict a ...