Boston, MA 04/08/2014 (wallstreetpr) – NRG Yield Inc (NYSE:NYLD) is a provider of clean energy, owning and operating diversified interest in energy production and distribution. The market values the company at $4.65 billion.
Once upon a time oil drillers were making investors rich no matter the stock you held. But things have changed or are fast changing. Prices of oil are faltering as supply exceeds demand and this means that there is very little to gain from holding oil stocks. However, as oil drillers stare at a future that is fast turning bleak, producers of clean energy are excited with numerous opportunities unfolding before them.
Where portfolio is energized
NRG Yield Inc (NYSE:NYLD) is among the notable clean energy companies which have skyrocketed in recent times, and still show strong signs of activeness. The company is currently involved in diverse clean energy production. Through a string of acquisitions, the company has been able to gain significant position in solar, natural gas, wind, geothermal and nuclear energy sources. Besides improving energy capacity, the company has also been able to improve its distribution by tapping more customers through strategic acquisitions.
In recent times, the company acquired Roof Diagnostics Solar which is involved in residential solar business. Market projections have shown that residential solar has the likelihood of becoming a big revenue frontier for solar companies. Yet another strategic acquisition involved addition of more than 0.6 million customers through purchase of the retail electric unit of Dominion Resources Inc (NYSE:D).
Strong earnings and dividend
NRG Yield Inc (NYSE:NYLD) is fast moving into solid profitability. The company is expected to realize earnings of $1.56 per share in 2014. The anticipated increase profit is expected to result in even higher dividend payout. The company currently observes dividend yield of 1.75 percent. Moreover, increase in free cash flow will also boost the company’s ability to return more value to investors through stock repurchase. No wonder analysts at Goldman Sachs recommend the stock for a buy.
