International operations cut their risk

Article Excerpt

With their clean, renewable power, these two companies have strong conceptual appeal for investors. But just as important is their mix of hydroelectric, wind and solar power. That diversity, along with their long-term contracts, provide stable cash flows. That lets these utility firms continue to build up their operations and add to your distributions. INNERGEX RENEWABLE ENERGY, $12.88, is a buy. The power generator (Toronto symbol INE; Shares outstanding: 204.3 million; Market cap: $2.7 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.6%; www.innergex.com) operates 40 hydroelectric plants, 35 wind farms and nine solar power fields. They’re spread across Canada, the U.S., France and Chile. In February 2020, Innergex formed an alliance with Hydro-Quebec to expand their renewable energy businesses. At the same time, Hydro-Quebec bought $661 million of Innergex stock. It now owns a 19.9% stake in the company. In the quarter ended June 30, 2023, Innergex’s cash flow per share fell 11.6%, to $0.38 from $0.43. The decrease was due to lower hydroelectric generation as well…