Long-term contracts support their solid yields

Article Excerpt

The best green energy producers, like Innergex and Brookfield, secure long-term contracts for their wind and solar projects. That cuts investor risk and provides steady cash flow for dividends. INNERGEX RENEWABLE ENERGY INC. $18 is a buy. The company (Toronto symbol INE; High-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 192.8 million; Market cap: $3.5 billion; Dividend yield 4.0%; Dividend Sustainability Rating: Above Average; www.innergex.com) lets you tap 38 hydroelectric plants, 32 wind farms and 7 solar fields. In February 2020, Innergex formed an alliance with Hydro-Quebec to expand its renewable energy businesses. Hydro-Quebec also bought $661 million of Innergex stock for a 19.9% stake in the company. With the April 2020 payment, the company increased its quarterly dividend by 2.9%, to $0.18 a share from $0.175. The annual rate of $0.72 yields a high 4.0%. However, Innergex has decided to maintain the current rate to preserve cash for its growth plans. For example, Innergex and Hydro-Quebec recently paid $393.4 million for Curtis Palmer, a 60-megawatt run-of-river hydroelectric…