August 1, 2016
(For the first time, three of the top four New York Times nonfiction best sellers are anti-Clinton books.
(BUY GGN our gold position is showing strong momentum. Paying 13%)
Needless to say we are happy with our purchase of NEP NextEra Energy: a nice 18% increase PLUS dividends. NEP is going ex-dividend this week and you should ADD or BUY for the first time. As they go ex-div. you may see a small pullback in price affording you the opportunity to get in. We are adding under $31.00. The technicals/charts are looking good.
From Sensei at seekingalpha.com:
In addition to supplying power to over 9 million Floridians, NextEra Energy, Inc. (NYSE:NEE) is America’s largest supplier of renewable energy. In fact, about 44% of NextEra’s 45 GW of total generating capacity comes from solar and wind, which serves customers in 27 states and Canada. More importantly for new investors is the fact that NextEra Energy has big growth plans for profiting from the green energy gold rush.
Between 2017 and 2018, NextEra plans to bring online up to 5.4 GW of new solar and wind projects. That’s in addition to the 4 GW it will have added in 2015 and 2016. To help fund this growth, NextEra Energy Inc. has set up a yieldco called NextEra Energy Partners (NYSE:NEP). This allows the utility to tap debt and equity markets to recoup the construction costs.
The way it works is that NextEra Energy Partners raises money through debt and selling additional shares to purchase NextEra Energy, Inc.’s wind and solar projects. Because each project comes with extremely long-term, fixed-price power purchase agreements (PPAs), NextEra Energy Partners has extremely steady cash flow. This is what funds its generous and fast-growing dividend. In fact, NextEra Energy Partners’ average remaining contract duration with large creditworthy utilities is 19 years.
In terms of dividend growth, owing to the enormous pipeline of both existing and upcoming solar and wind projects under construction, NextEra Energy Partners expects to grow its payout by 12%-15% through 2020. Since a good rule of thumb for total returns is yield + long-term dividend growth, this means investors could be looking at potentially 15%-20% returns over the next five years.
“The artist Christopher Wool has a word painting, ‘Sell the house, sell the car, sell the kids.’ That’s exactly how I feel – sell everything. Nothing here looks good,” Gundlach told Reuters in a telephone interview.
Gundlach, who oversees more than $100 billion at Los Angeles-based DoubleLine, said that his firm went “maximum negative” on Treasuries on July 6 when the yield on the benchmark 10-year Treasury note hit 1.32 percent.
That however does not mean he is short. “We never short in our mainline strategies. We also never go to zero Treasuries. We went to lower weightings and change the duration,” Gundlach said.
It is also unclear if Gundlach was short equities; what we do know is that he continues to hold (and likely accumulate) gold. He told Reuters that “his firm continues to hold gold, a traditional safe-haven, along with gold miner stocks.”
IRS Commissioner John Koskinen referred congressional charges of corrupt Clinton Foundation “pay-to-play” activities to his tax agency’s exempt operations office for investigation, The Daily Caller News Foundation has learned.