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8point3 Energy (CAFD) Declares 3.5% Dividend Hike in Q4
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8point3 Energy Partners LP announced that its board of directors has declared a hike in the quarterly distribution of Class A shares for the fourth quarter of 2016, bringing the annualized payout to 99.60 cents per share from 96.24 cents paid earlier. The annual yield on distribution is 7.7%.
The new quarterly distribution amounts to 24.90 cents per share, reflecting a 3.5% increase from the third-quarter level of 24.06 cents. The new distribution will be paid on Jan 13, 2016 to shareholders of record as of Jan 3.
Growth Initiatives
In Nov 2016, 8point3 Energy, a joint venture between SunPower (SPWR - Free Report) and First Solar Inc. (FSLR - Free Report) , announced that it has signed an agreement to acquire a 34% interest in First Solar’s 300-megawatt (“MW”) Stateline solar project, located in San Bernardino County. (Read more: 8point3 to Acquire Interest in 300MW Solar Project)
The company had acquired several projects in the past too. As of Aug 31, 8point3 Energy’s portfolio consisted of 530 MW of solar generating assets. Acquisition of these solar projects will definitely benefit the partnership.
Distribution Target & Financials
Thanks to these project acquisitions, 8point3 Energy is on track to meet its targeted annual distribution growth rate of 12–15% through 2017 end.
The partnership’s cash and cash equivalents as of Aug 31, 2016 were $29.9 million. It had $101 million available under the five-year revolving credit facility. During the third-quarter earnings call, the company had revealed that for fiscal 2016, it expects $74.8–$76.8 million of cash available for distribution, compared to its prior expectation of $71.0–$73.5 million.
Price Movement
8point3 Energy’s stock has lost about 18.4% in the last one year, outperforming the Zacks categorized Solar industry’s 56.7% decline. This could be because of the company’s focus on acquisition strategies that help to boost its performance.
Sunrun has delivered a positive earnings surprise of 153.57% in the trailing four quarters. The company’s earnings are expected to grow 140.4% in the next five years.
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8point3 Energy (CAFD) Declares 3.5% Dividend Hike in Q4
8point3 Energy Partners LP announced that its board of directors has declared a hike in the quarterly distribution of Class A shares for the fourth quarter of 2016, bringing the annualized payout to 99.60 cents per share from 96.24 cents paid earlier. The annual yield on distribution is 7.7%.
The new quarterly distribution amounts to 24.90 cents per share, reflecting a 3.5% increase from the third-quarter level of 24.06 cents. The new distribution will be paid on Jan 13, 2016 to shareholders of record as of Jan 3.
Growth Initiatives
In Nov 2016, 8point3 Energy, a joint venture between SunPower (SPWR - Free Report) and First Solar Inc. (FSLR - Free Report) , announced that it has signed an agreement to acquire a 34% interest in First Solar’s 300-megawatt (“MW”) Stateline solar project, located in San Bernardino County. (Read more: 8point3 to Acquire Interest in 300MW Solar Project)
The company had acquired several projects in the past too. As of Aug 31, 8point3 Energy’s portfolio consisted of 530 MW of solar generating assets. Acquisition of these solar projects will definitely benefit the partnership.
Distribution Target & Financials
Thanks to these project acquisitions, 8point3 Energy is on track to meet its targeted annual distribution growth rate of 12–15% through 2017 end.
The partnership’s cash and cash equivalents as of Aug 31, 2016 were $29.9 million. It had $101 million available under the five-year revolving credit facility. During the third-quarter earnings call, the company had revealed that for fiscal 2016, it expects $74.8–$76.8 million of cash available for distribution, compared to its prior expectation of $71.0–$73.5 million.
Price Movement
8point3 Energy’s stock has lost about 18.4% in the last one year, outperforming the Zacks categorized Solar industry’s 56.7% decline. This could be because of the company’s focus on acquisition strategies that help to boost its performance.
Zacks Rank & a Key Pick
8point3 Energy currently carries a Zacks Rank #4 (Sell). A better-ranked stock in the solar space is Sunrun Inc. (RUN - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunrun has delivered a positive earnings surprise of 153.57% in the trailing four quarters. The company’s earnings are expected to grow 140.4% in the next five years.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>