Big utilities keep adding green projects

Article Excerpt

Given government mandates to cut greenhouse gas emissions, these three utility companies continue to invest in renewable power. That should lift their appeal for big institutional investors, which increasingly focus on ESG (environmental, social, and governance) scores. While most renewable energy projects rely on government subsidies, these three draw almost all of their earnings from regulated operations (including renewable projects). That cuts risk. What’s more, the extra cash flow from their new projects will let them keep raising their dividends. ENBRIDGE INC. $46 is a buy. The company (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 2.0 billion; Market cap: $92.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 7.7%; TSINetwork Rating: Above Average; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada eastward as well as to the U.S. Its network transports 30% of the crude oil produced in North America and 20% of the natural gas consumed in the U.S. The company also distributes gas to 3.8 million…