Yield co
A yield co or yieldco is a company that is formed to own operating assets that produce a predictable cash flow, primarily through long term contracts.[1] Yield cos are expected to pay a major portion of their earnings in dividends, which may be a valuable source of funding for parent companies which own a sizeable stake.[3] They serve the same purpose as master limited partnerships (MLPs) and real estate investment trusts (REITs), which most utilities can't form due to regulatory constraints.[4] Yield cos give investors a chance to participate in renewable energy without many of the risks associated with it.They include: There is also an ETF (Exchange Traded Fund)[clarification needed] that was set up by Global X Funds[clarification needed] under the ticker Symbol YLCO, which seeks investment results that correspond generally to the price and yield performance, of the Indxx Global YieldCo Index.