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NRG Yield and NextEra Energy Partners Shine on Exchanges

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Performance measures

Distributions play a measurable role in overall yieldco performance. So yieldcos should be assessed based on total returns, or distribution capital gains. Since most yieldcos are under a year old, we’ll look at total returns since inception until March 19, 2015 (holding period return). And, we’ll assume that dividends aren’t reinvested.

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NRG Yield (NYLD)

NRG Yield (NYLD) is the oldest renewable energy yieldco. The stock started trading on July 17, 2013. Investors that bought the stock before that day’s closing paid $27.25 a share. These investors have gotten a 93.9% return on their investment. This translates to an annualized compounded rate of return of 48.6%. The stock closed at $50.80 on March 19, 2015.

Pattern Energy Group (PEGI)

Pattern Energy Group’s (PEGI) adjusted closing price came in at $23.27 on September 27, 2013, the first day of trading. The stock has given a 28.2% return since then, or a compound annualized return of 18.4%. The stock closed at $27.88 on March 19, 2015.

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Abengoa Yield (ABY)

ABY closed at $37.00 on June 13, 2014, its first day of trading. ABY has lost around 7.6% value, or 8.9% annualized, even after accounting for distributions. The stock closed at $33.19 on March 19, 2015.

NextEra Energy Partners (NEP)

NEP closed at $32.00 on June 27, 2014, its first day of trading. NEP has given a total return of 33%, or 48% annualized, up until March 19, 2015.

TerraForm Power (TERP)

TERP closed at $33.09 on July 18, 2014, its first day of trading. TERP has given a total return of 6.7%, or 10.2% annualized, up until March 19, 2015.

Most yieldco stocks have outperformed the Energy Select Sector SPDR ETF (XLE) over respective periods.

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