8point3 Energy Partners LP CAFD announced that its board of directors has declared a 3.5% hike in its quarterly distribution for its Class A shares for the fourth quarter of 2015, bringing the annualized payout to 86.8 cents per share. The annual yield on the distribution is 5.5%.
The new quarterly distribution comes to 21.7 cents per share, up from the prior payment of 20.97 cents. The amount will be paid on Jan 14, 2016 to shareholders of record as on Jan 4, 2016.
8point3 Energy is a limited partnership that was formed by two major solar companies – First Solar Inc. FSLR and SunPower Corp. SPWR – in a bid to own and operate a portfolio of selected solar energy generation assets primarily in the U.S. The company serves residential, commercial and industrial customers. 8point3 Energy Partners is based in San Jose, CA. The company began trading on the NYSE on Jun 19, 2015.
The partnership strives to maintain a flexible liquidity position. It generated $6.7 million of cash available for distribution payments in the third quarter. Cash available for distribution payments is expected to be between $14.8 million and $15.2 million for the fourth quarter of 2015.
Recently, the partnership said that all project assets in its initial portfolio, which includes 432 megawatts (“MW”) of power plant, commercial and residential assets and 131 MW of assets, which commenced commercial operations in the fourth quarter are generating expected cash flows. This indicates that the partnership is well positioned to attain its targeted 2016 distribution growth rate of 12% to 15% notwithstanding the recent volatility in the yieldco industry.
8point3 Energy currently has a Zacks Rank #3 (Hold). A better-ranked stock in the solar industry is JA Solar Holdings Co., Ltd. JASO, sporting a Zacks Rank #1 (Strong Buy).
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