Bank of America
The company posted very solid fourth-quarter results, and interest rate increases are welcomed by banks. Bank of America Corp. (NYSE: BAC) is a ubiquitous presence in the United States, providing various banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, corporations and governments in the United States and internationally. It operates 5,100 banking centers, 16,300 ATMs, call centers and online and mobile banking platforms.
The bank has expanded into several new U.S. markets, with scale across the country positioning it ideally to benefit from accelerating loan growth over the next two years. Moreover, unlike smaller peers, scale allows the bank to increase investment substantially over the next few years without notably jeopardizing returns, driving further market share gains.
Investors may recall that Warren Buffett owns a stunning 1.1 billion shares of this bank.
Shareholders receive a 1.95% dividend. Goldman Sachs has a $53 target price, and the consensus target is $51.12. Bank of America stock closed on Wednesday at $43.
NextEra Energy Partners
This utility is located in one of the fastest-growing states in the country and is a big ESG (environmental, social, governance) favorite. Next Era Energy Partners L.P. (NYSE: NEP) acquires, owns and manages contracted clean energy projects in the United States. Its portfolio of contracted renewable generation assets consists of wind and solar projects, as well as contracted natural gas pipeline assets.
The company owns roughly 6.5 gigawatts of utility-scale wind capacity and 1.4 gigawatts of utility-scale and distributed generation solar capacity in North America as of mid-2021. NextEra also owns an interest in a network of natural gas pipelines in Texas. All of that company’s assets have long-term contracts with an average remaining contractual life of 14 years across the portfolio. NextEra Energy owns 57.2% of NextEra Energy Partners common units as of the end of 2020, with the remaining ownership interest publicly traded.
Shareholders receive a 3.20% dividend. Goldman Sachs has set a $102 target price, while the consensus target on NextEra Energy Partners stock is just $88.44. Wednesday’s final trade was for $84.15, well over 2% higher on the day.
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