Topic: How To Invest

Q: What do you think of Atlantica Sustainable Infrastructure and its dividend? Thanks.

Article Excerpt

A: Atlantica Sustainable Infrastructure plc, $34.93, symbol AY on Nasdaq (Shares outstanding: 101.2 million; Market cap: $3.6 billion; www.atlantica.com), owns and manages renewable energy, efficient natural gas, transmission and transportation infrastructure. Atlantica’s portfolio consists of approximately 27 facilities. Renewable energy sources like solar and wind farms make up 69% of those assets, while transmission and transport (15%), efficient natural gas (13%), and water (3%) account for the rest. Additionally, the company has geographical diversification, with 45% of its revenues from North America, 35% from Europe, 12% from South America, and 8% from the rest of the world. Atlantica’s clients are high-credit-quality customers under long-term contracts. Most are governmental entities, which further reduces risk. Its other customers include publicly traded companies like Enel Generacion Chile and South Africa’s Eskom. The average life remaining on the company’s contracts is around 18 years, with predefined rates and options for renewal in many cases. Atlantica continues to add new assets through acquisitions. For instance, it recently signed a purchase…