Sustainable power supports their high yields

Article Excerpt

INNERGEX RENEWABLE ENERGY $13.38 (Toronto symbol INE; Shares o/s: 108.1 million; Market cap: $1.8 billion; TSINetwork Rating: Extra Risk; Divd. yield 5.1%; operates 31 hydroelectric plants, 19 wind farms and one solar power field. The facilities are spread across Quebec, Ontario, B.C., Idaho, France and Iceland. Innergex gets 48% of its power from hydro plants, 31% from wind, 20% from geothermal and 1% from solar energy. In the quarter ended December 31, 2017, cash flow jumped 70.6%, to $38.1 million, or $0.35 a share, from $22.3 million, or $0.21, a year earlier. New plants, plus higher wind speeds, boosted the amount of power generated. Innergex trades at just 5.6 times its forecast 2018 cash flow of $2.38 a share. The stock yields a high 5.1%. The company has now completed the acquisition of Alterra Power for $1.1 billion. That firm operates eight projects (three hydro, two wind, two geothermal and one solar) in Canada, the U.S. and Iceland. It will now get…

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