Investors will like their shrewd acquisitions

Article Excerpt

These two firms are using acquisitions to expand. While that adds risk for investors, their new businesses are solid and will spur your dividend increases for years to come. INNERGEX RENEWABLE ENERGY INC. $19 is a buy. The stock (Toronto symbol INE; High-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 139.4 million; Market cap: $2.6 billion; Dividend yield 3.7%; Dividend Sustainability Rating: Above Average; lets you tap 37 hydroelectric plants, 26 wind farms and five solar power fields. They’re spread across Quebec, Ontario, B.C., Texas, Idaho, France and Chile. Innergex gets 64% of its power from wind, 34% from hydro and 2% from solar. With the April 2019 payment, your quarterly dividend rose 2.9%, to $0.175 a share from $0.17. The new annual rate of $0.70 yields a solid 3.7%. Innergex keeps growing by acquisition, including its 2018 purchase of Alterra Power for $1.1 billion. Alterra operated 10 projects (three hydro, three wind, two geothermal and two solar) in Canada, the U.S. and Iceland. Innergex later…

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