The Trump administration is suspending leases to five wind farms under construction off the US East coast, saying the turbines may interfere with radar signals and harm national security https://t.co/w7D1zamYOW ...

Core Viewpoint - Acciona Energía has entered into an agreement to sell a 49% stake in its U.S. solar portfolio and 100% ownership of two wind farms in Mexico for approximately $1 billion, reflecting a strategic move to recycle capital while maintaining operational control in key markets [1][4]. Group 1: Transaction Details - The U.S. solar portfolio consists of four large-scale photovoltaic projects with a total capacity of 1.3 gigawatts, including Red Tailed Hawk (458 MWp), Fort Bend Solar (316 MWp), High Point Solar Farm (127 MWp), and Union Solar (415 MWp) [2]. - In Mexico, the transaction includes the full divestment of the El Cortijo (183 MW) and Santa Cruz (138 MW) wind farms, totaling 321 MW of installed capacity [3]. - The deal is expected to close in the first half of 2026, pending regulatory approvals and financing arrangements by the buyer [3]. Group 2: Strategic Implications - This transaction is part of Acciona Energía's capital recycling strategy, aimed at unlocking value from operating assets while retaining control in core markets [4]. - By keeping a 51% controlling stake in the U.S. solar portfolio, the company ensures continued exposure to long-term cash flows in a priority growth region while freeing up capital [4][5]. - Since mid-2024, Acciona Energía has sold nearly 1.7 GW of renewable capacity across various countries, generating proceeds of around €2.4 billion, which further strengthens its balance sheet [5]. Group 3: Market Context - The deal reflects ongoing investor interest in contracted renewable infrastructure in the U.S. and Mexico, despite challenges such as higher interest rates and regulatory uncertainties [6]. - Infrastructure funds are increasingly focusing on operating assets with stable cash flows rather than development-stage projects, indicating a shift in investment strategy [6]. - In Mexico, the sale occurs in a cautious investment climate, where private capital remains selective but active in established renewable operations [7].

Core Insights - Investing in high-yielding dividend stocks like MPLX and Clearway Energy can generate significant passive income, with a combined annual income of nearly $68 from a $1,000 investment [1] Group 1: MPLX Overview - MPLX is a master limited partnership (MLP) that operates energy midstream assets, providing stable cash flow through long-term contracts [2] - The company generated over $2.9 billion in distributable cash flow in the first half of the year, covering its distribution comfortably by 1.5 times [3] - MPLX has multiple expansion projects, including gas pipelines and processing plants, expected to enhance future cash flow growth through 2029 [4] Group 2: Financial Flexibility and Growth - MPLX maintains a leverage ratio of 3.1 times, allowing for acquisitions and investments, including a $2.4 billion purchase of Northwind Midstream [5] - The company has consistently increased its distribution since 2012, with a compound annual growth rate of over 10% since 2021, indicating strong earnings growth potential [6] Group 3: Clearway Energy Overview - Clearway Energy owns a diverse portfolio of clean power assets, generating predictable cash flow through long-term power purchase agreements [7] - The company expects to produce $2.08 per share of cash available for dividends (CAFD) this year, exceeding its current annual dividend rate of $1.78 per share [8] Group 4: Future Growth and Dividend Plans - Clearway is upgrading existing wind farms and acquiring new projects, aiming to increase its CAFD to over $2.50 per share by 2027, representing over 20% growth [9][10] - The company plans to raise its dividend to $1.98 per share by 2027, which is more than 11% above the current rate, with continued growth expected beyond 2027 [10] Group 5: Investment Appeal - Both MPLX and Clearway Energy generate stable cash flow, enabling high-yield dividends while expanding operations, making them attractive options for durable and rising passive income [11]

Project Disruption - The administration has halted work on wind farms off the East Coast [1] - Multibillion-dollar projects are facing disruption [1] Economic Impact - The halt risks jobs [1]