If You Want Steady Dividend Income, Read This
July 10, 2017
Earn Passive Income from Wind Energy
The recession hit many parts of America’s heartland hard, but business has held up in Crosby County, Texas.
A nearby construction project is the reason. Hundreds of workers have flooded in, filling the motels each night and keeping the local diners humming. Crews pack the restaurants to capacity at lunchtime.
They’re building the Fiber Winds Energy Project, a sprawling clean energy facility covering some 10,900 acres of farmland. And for investors looking for steady income, there might be no better business in the world. Here’s why.
It’s big, for starters. Some 30 turbines dot the landscape. And at a cost of over $145.0 million, it represents one of the biggest clean energy projects in the region. (Source: “Fiber Winds Renewable Energy Project“, Tri Global Energy LLC, June 6, 2014.)
The first phase of the facility began operations in 2014, and phase two is already running. Construction on the final leg of the project is still underway, with first power expected by the end of 2020.
Fiber Winds will produce 80 megawatts once completed, which is enough electricity to light 24,000 homes. You have so much demand, utilities buy up every volt of power they can.
Building a wind farm is a big headache, but it’s a simple business after you get it going. There’s almost no cost to run Fiber Winds, nor does it need much in the way of maintenance or labor.
The turbines make money whenever the wind blows, earning a fee with each crank. Sure, their income is dependent upon the weather, but over time, these fluctuations tend to even out.
The breeze picks up around noon on the Texas Panhandle. That’s great because electricity prices peak around midday. Better still, the project is fully subscribed under long-term contracts, so you have a locked-in customer for decades.
For owners, it resembles a cash cow. Investors front a big pile of money to build the facility, but once up and running, the turbines can just be “milked” for ongoing income.
And it’ll do its job for the next 50 years. The wind blows regardless of wars, financial crises, or stock market crashes. Each month, owners collect a tidy distribution check.
In sum, investors seeking reliable income love projects like Fiber Winds. Unfortunately, you can’t invest directly in the facility. You can, however, buy shares in the firm that owns it: NextEra Energy Inc. (NYSE:NEE).
In addition to Fiber Winds, NextEra owns dozens of other clean energy projects. And because these assets gush so much cash, the firm has paid a growing dividend to shareholders for decades. I expect that tradition to continue for decades more to come.
