Have you invested in the growing renewable energy field? While traditional utilities offer a recurring flow of revenue and handsome dividends, that stable business model is increasingly coming under threat from the need to shift our electricity generation over to renewable energy sources and off fossil fuels.
Incredibly, renewable energy companies offer the same benefits as traditional utilities, ranging from a regulated and stable business model to providing investors with handsome dividends.
Ready to invest? Here are several renewable options to consider adding to your portfolio.
Innergex Renewable Energy (TSX:INE) is a truly unique investment opportunity. The company has a sprawling network of facilities that includes an installed capacity of 2,888 MW with an interest in 66 facilities scattered across Canada, the U.S., France, and Chile.
In terms of growth, Innergex recently announced it was selling its interest in several Iceland-based assets, where the company wasn’t operating the facilities and is instead focusing on new opportunities and energy types, which Innergex views as more core. Examples of this include proposed renewable energy solutions for both Hawaii and Saskatchewan, where aggressive goals of reducing or eliminating fossil fuels from electricity generation have been stated.
Another example is the recently announced $125 million project to provide a 7.5 MW hydro-generating station. Innergex will oversee both the construction and operation of the facility, which should begin operation in 2022 with a 40-year PPA in place.
In terms of a dividend, Innergex offers investors a solid quarterly 4.94% yield.
TransAlta Renewables (TSX:RNW) is another viable renewable energy option to consider, with 34 facilities that are dispersed across 10 operating regions coming together to provide 2,407 MW of generating capacity.
Most of TransAlta’s facilities are wind-based, but the company also has hydro, gas, and solar elements in its network, and it is that diversification element that sets TransAlta out from the pack as a unique investment worthy of consideration.
In terms of results, TransAlta reported on the first fiscal quarter of 2019 a few weeks ago, which showed the company performing on a similar level to last year, with only slight changes visible on the surface. By way of example, revenue came in at $127 million, bettering the number from the same quarter last year by $2 million, while comparable EBITDA managed a $6 million improvement to $116 million. Net earnings attributed to common shareholders came in at $76 million, or $0.29 per basic diluted share, beating the $66 million, or $0.26 per share, reported in the same period last year.
From a growth standpoint, TransAlta completed the acquisition of the 29 MW Antrim wind project in New Hampshire, which comes with a 20-year PPA.
Perhaps the most alluring aspect of TransAlta for investors is its dividend, which provides an incredible 6.78% yield and a monthly distribution schedule.
Most investors will recognize the parent company of Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP), but there’s plenty more to love about this stock apart from its name and the appetizing 6.56% yield on offer.
Looking at growth potential, Brookfield Renewable is targeting earnings to grow by over 60% on average over the next two years. This factor alone should cause buy alarms to go off, but there’s still more upside from investing in this renewable energy gem.
Brookfield is big on organic growth, and to that extent, the company has amassed a whopping portfolio of 880 generating facilities across four continents that collectively provide 17,400 MW of generating capacity.
The vast majority of those facilities are hydro, but Brookfield also has wind and solar elements across its network, as well as providing distributed generation and storage facilities.
Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. Brookfield Renewable Partners is a recommendation of Dividend Investor Canada.
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