Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch

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

Number of Hedge Fund Holders: 20

When a caller asked about NextEra Energy Partners, LP’s (NYSE:NEP) dividends, Cramer said:

“I’m warning you about the dividend again. I mean, I think, dividend, when you get those yields 15, 20%, you know, it is trouble. There will be people who don’t know that it’s trouble and they will sell when they cut the dividend and then we’ll look at it.”

NextEra Energy (NYSE:NEP) focuses on acquiring, owning, and managing contracted clean energy projects. The company has a diverse portfolio that includes renewable generation assets such as wind, solar, and battery storage projects, as well as contracted natural gas pipeline assets. Currently, the company offers a substantial dividend yield, appealing to income-focused investors. However, as of October 29, its forward payout ratio is 150%.

During the third quarter earnings call, management adjusted expectations and indicated that dividends per share are anticipated to grow at roughly 10% annually through at least 2026, based on a 2024 base.

Recently, NextEra Energy (NYSE:NEP) declared a quarterly distribution of $0.9175 per common unit, which corresponds to an annualized rate of $3.67 per common unit. This represents an increase of nearly 6% from the previous year and will be payable on November 14, 2024, to unitholders of record as of November 6.