Roughly four years ago, Atlantica Yield’s (NSDQ: AY) largest shareholder Abengoa SA (Spain: ABG) filed bankruptcy. The move restricted cash flows from facilities the pair held in common. And as a result, the yieldco was forced to suspend dividends until September 2016, when it resumed at a quarterly rate that was barely one-third the former payout.
Carlos Slim’s America Movil (Mexico: AMXL, NYSE: AMX) today is a global powerhouse serving nearly 280 million wireless and 85 million wireline customers in more than a dozen countries. Mexico is most important at a third of revenue, followed by Brazil at 20 percent and the US at 15 percent.
Roughly a year ago, deep-pocketed Global Infrastructure Partners replaced downsizing NRG Energy (NYSE: NRG) as Clearway Energy’s (NYSE: CWEN) primary owner and sponsor. We immediately added the yieldco to our Aggressive Holdings, anticipating faster cash flow and dividend growth.
US/China trade turmoil, rising political tensions in Hong Kong and erratic Australian regulation have driven down shares of CLP Holdings (Hong Kong: 2, OTC: CLPHY) below our buy target of USD11. Now’s the time to pick up shares of this Aggressive Holding.
It’s three and a half years since Kinder Morgan Inc (NYSE: KMI) shocked its investors with a 75 percent dividend cut. And it’s a fair bet many former shareholders are still steering clear. That’s a shame, given the stock’s nearly 40 percent return so far in 2019.
Less than two decades ago, AES Corp (NYSE: AES) was one false step from bankruptcy. That’s when management dramatically slashed debt, streamlined its portfolio and modernized its fleet and systems with the most advanced power technology.
Portfolio high grading in good times will prevent portfolio-wrecking losses when the macro picture worsens. We’ve had Aggressive Holding Suez (Paris: SEV, OTC: SZEVY) on a very short leash the past few months. Now, thanks to strong first quarter numbers and guidance, it’s again a buy.
When it comes to MLP distribution cuts, lightening often has struck several times in the same place. So it’s no wonder investors have been skeptical about Suburban Propane Partners’ (NYSE SPH) 10 percent plus distribution, since management took the hard step of a -32.4 percent reduction in late 2017.
It’s been nearly a dozen years since Italy’s Enel SpA (Italy: ENEL, OTC: ENLAY) acquired a majority stake in Spain’s Endesa SA (Spain: ELE)—and immediately became the largest holder of electricity assets in South America as well. That was thanks to a much earlier merger between Endesa and the former Enersis of Chile, which had built a collection of assets across several countries most importantly Brazil.
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