Why Ballooning Debt Is a Mounting Concern for This High-Yield Dividend Stock

By Jason Hall and Tyler Crowe – Oct 24, 2023 at 5:22AM

NYSE: NEP

NextEra Energy Partners

Market Cap

$3B

Today's Change

(4.59%) $1.36

Current Price

$30.94

Price as of May 3, 2024, 2:44 p.m. ET

The bulk of its debt matures within three years, and is going to cost a lot to service.

In this video, Motley Fool contributors Jason Hall and Tyler Crowe break down when NextEra Energy Partners' (NEP 4.59%) debt comes due, and the implications on its cash flows when the interest rates it must pay to service that debt balloon. Also discussed: Clearway Energy (CWEN 2.40%) (CWEN.A 2.37%), Brookfield Renewable (BEP 3.89%) (BEPC 4.96%), and Atlantica Sustainable Infrastructure (AY 0.19%).

*Stock prices used were from the morning of Oct. 18, 2023. The video was published on Oct. 24, 2023.

Jason Hall has positions in Atlantica Sustainable Infrastructure Plc, Brookfield Renewable, Brookfield Renewable Partners, Clearway Energy, and NextEra Energy Partners. Tyler Crowe has positions in Brookfield Renewable. The Motley Fool has positions in and recommends Brookfield Renewable and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.