10 Extreme Dividend Stocks to Invest in Now

1. NextEra Energy Partners, LP (NYSE:NEP)

Dividend Yield as of January 23: 22.35%

NextEra Energy Partners, LP (NYSE:NEP) is a Florida-based master limited partnership (MLP) that mainly focuses on the acquisition of clean energy projects. The company recently revealed that it is rebranding as XPLR Infrastructure, LP, effective immediately. Starting Monday, February 3, 2025, it will trade on the New York Stock Exchange (NYSE) under the new ticker symbol, XIFR.

NextEra Energy Partners, LP (NYSE:NEP)’s outlook remains uncertain due to several factors. One major concern is the potential pause in Federal Reserve rate cuts, which poses a significant risk to NEP. In addition, the company’s market capitalization has dwindled to just 20% of its value from two years ago, while its heavily leveraged financial position continues to be a challenge.

However, some investors are questioning whether the negatives have already been fully factored into the stock’s price. Last month, J.P. Morgan released a report suggesting that NextEra Energy Partners, LP (NYSE:NEP)’s ongoing strategic review could yield favorable outcomes and that the market may have overreacted to its challenges.

Despite these difficulties, NextEra Energy Partners, LP (NYSE:NEP) has continued to deliver on its commitment to dividends, maintaining its appeal to investors. In the third quarter of 2024, the company’s cash available for distribution came in at $155 million. It currently offers a quarterly dividend of $0.9175 per share and has a dividend yield of 22.35%, as of January 23.

As per Insider Monkey’s database of Q3 2024, 18 hedge funds owned stakes in NextEra Energy Partners, LP (NYSE:NEP), worth nearly $99 million in total.

Overall NextEra Energy Partners, LP (NYSE:NEP) ranks first on our list of extreme dividend stocks. While we acknowledge the potential for NEP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NEP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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