Buying CAFD

Reiterating a buy on 8point3 Energy: CAFD

This solar yield company is paying a hefty dividend that is going to rise in coming years as oil and gas firm up in price. The company is very solid financially, the two companies feeding it projects are very secure financially – First Solar FSLR and SunPower SPWR. 

With a 7.5% very secure dividend, we can wait for solar to make its next run upward. That day will come, quite possible sooner than people think, i.e. 2018 or 2019. When that run happens, it will likely be another doubler, maybe tripler. Do not discount what higher oil and gas prices will do for solar that is becoming cheaper every day. It is already cheaper to build new solar capacity than natural gas or coal fired power plants, so, new energy needs are in fact being met with solar around the world, including in the U.S. where almost all new power generation the past two years was alternative (wind and solar mainly) per EIA. 

I rate CAFD a top 10 position on the combination of safety from these value prices, a growth future and the hefty dividend. Great for IRA accounts.

Buying more CAFD.

Kirk