Topic: How To Invest

What is Pat’s commentary for the week of July 25, 2023

Article Excerpt

Utility companies around the world are investing heavily in renewable power. That’s mainly due to government mandates to cut greenhouse gas emissions. In response, Emera has shut down most of its coal-fired power plants. It’s also aggressively building new wind and solar projects. As a result, the company has already cut its carbon emissions by 41% since 2005. Emera now aims to cut its emissions to “net-zero” by 2050. This ambitious goal should increase its appeal with big institutional investors, which increasingly focus on ESG (environmental, social, and governance) scores. A big drawback with renewable energy projects is that they tend to rely on government subsidies. However, Emera gets nearly all its earnings from its regulated power operations (including renewable projects), which cuts that risk. Investors will also benefit as the extra cash flow from Emera’s new investments lets it raise your dividend rate by 4% to 5% annually through 2025. I asked our Successful Investor research department to draw up this Inner Circle…