Monday, August 21st, 2017

Fund managers line up for high-yielding energy company subsidiaries

Traders work on the floor of the New York Stock Exchange (NYSE)By David Randall NEW YORK (Reuters) – The hunt for dividend yield is pushing U.S. fund managers into an unproven new offshoot of the alternative energy industry. Yield companies – commonly called "yieldcos" – are spinoffs of alternative energy companies that own assets such as wind or solar farms and pay investors dividends out of the cash flow generated by long-term contracts to sell power to utility companies. Though many investors have never heard the term, yieldcos are popping up in the portfolios of some of the most widely-held mutual funds in the United States. …


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