Buy these renewables for growth and income

Article Excerpt

Below are two renewable energy stocks that now get most of their revenue from regulated utilities or long-term contracts. That supports their high yields. ALGONQUIN POWER & UTILITIES, $8.12, is a buy. The utility (Toronto symbol AQN; Shares outstanding: 767.8 million; Market cap: $6.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.5%; www.algonquinpower.com) completed the sale of its 42.2% ownership stake in Atlantica Sustainable Infrastructure plc in December 2024 for $1.08 billion (all figures except share price and market cap in U.S. dollars). Algonquin also sold its non-regulated renewable energybusiness to LS Power in January 2025 for up to $2.5 billion. Today, Algonquin focuses entirely on its regulated utilities, which supply electricity, gas, water distribution and wastewater collection services to 3.15 million customers in Canada, the U.S., Chile and Bermuda. Meantime, in the three months ended March 31, 2025, revenue rose 7.1%, to $692.4 million from $646.2 million a year earlier. If you factor out one-time items, earnings improved 39.3%, to $111.6 million from $80.1 million. Due to more…