Got $1,000? This ultra-high-yield dividend stock could boost total returns.

NextEra Energy Partners (NYSE: NEP) is struggling. Rising interest rates have hurt twice. They've raised the cost of borrowing to refinance and acquire. They have also hurt its stock price, which has dropped two-thirds since peaking. That increased its dividend yield to above 10%.

The Federal Reserve's rate reduction should reduce that headwind this year. Additionally, the organization is working hard to strengthen its finances so it can flourish again. These catalysts might deliver the renewable energy company massive total returns if all goes well.

One of the highest dividend yields in the industry is offered by NextEra Energy Partners. At the current rate, a $1,000 investment might yield over $100 in dividends.

Whether the company can continue its massive yield is key. No dividend cuts are planned for NextEra Energy Partners. It plans to increase payouts until 2026. The corporation wants 6% growth and 5% to 8% annual growth. Although slower than its early expectation of 12%-15% annual dividend increase, it's still a good rate for a high-yielding investment.

There is a major catch. NextEra Energy Partners estimates a mid-90s dividend payout ratio through 2026. That's quite high and risky. If things don't go as planned, the corporation may need to halt or cut its dividend to gain breathing room.

Plan to boost growth Last year, NextEra Energy Partners presented a two-part strategy to fix its balance sheet and raise its dividend. Selling gas pipeline assets is the first step to becoming a pure-play renewable energy provider. These sales will fund the purchase of its remaining convertible equity portfolio financings (CEPFs) as they mature over the next few years. Any remaining funds will be used for purchases.

It sold STX Midstream to Kinder Morgan for $1.8 billion last year. That money was used to service debt and will be used to buy off CEPFs maturing through June 2025. Meade Pipeline, NextEra Energy Partners' last gas pipeline, will be sold next year. That sale should fund additional CEPFs and give it enough equity to undertake acquisitions until 2027.

Its near-term growth plan has also changed from acquiring running renewable energy assets from NextEra Energy to organic expansion. Repowering 1.3 gigawatts of wind energy assets until 2026 is its goal. 

These high-return projects replace older wind turbines with larger, more powerful ones that generate more electricity and income. NextEra Energy Partners believes repowering projects can power its 6% dividend rise this year. It expects it won't need equity funding until 2027 to grow.

Large total return potential If it follows its plan, NextEra Energy Partners has huge total return potential. It may pay a huge, rising dividend to strengthen its finances. Redeeming CEPFs would enhance its stock price.

The company's stock price might rise dramatically with falling rates. That would allow it to make purchases again with stock, perhaps increasing expansion. them's risky that things won't go as planned, which could force them to lower its payout, but the upside is huge.

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