NHC is a coal play; if fossil fuel prices remain depressed, it will be hard for NHC to make headway. However, the market has become too bearish and is ignoring the complexity of the energy transition. Also, with future supply falling dramatically as we move toward a carbon-neutral planet, albeit without Trump’s support, we believe prices will recover, especially when Beijing successfully kickstarts its economy. NHC is forecast to yield more than 10% over the coming years, but this will depend on the price of coal.
- We like NHC for its yield and hold it in our Active Income Portfolio. In addition to its yield, we are targeting a break of $6 through 2025/6.