After two weak months, June brought a strong recovery to clean energy stocks and the market in general. The broad market benchmark IWM put on 7.2 percent, reversing its previous loss for the year to enter the 4th of July holiday up 4.7 percent. My clean energy benchmark PBW shot up 8.6 percent, for year to date gains of 9.9 percent.
Meanwhile my relatively conservative 10 Clean Energy Stocks for 2014 model portfolio rose 3.6 percent, retaining its lead on the broad market with a 7 percent gain so far this year, but falling back behind more volatile clean energy stocks.
Performance details are shown in the chart below, as well as in the individual stock notes which follow. Note that the chart is click-able for a larger version. The numbers to the left of the blue diamonds are US$ returns since the last update, those on the red bars are returns so far this year.
Individual Stock Notes
(Current prices as of July 3rd, 2014. The "High Target" and "Low Target" represent my December predictions of the ranges within which these stocks would end the year, barring extraordinary events.)
Sustainable Infrastructure REIT Hannon Armstrong paid a second quarter dividend of $0.22. I had hoped for a small dividend increase, but given that the company's policy is to pay 100 percent of core earnings in the form of dividends, I will place more importance on the company's soon-to-be announced second quarter core earnings than on the dividend payment. I hope to see core earnings on track for the 15% annual increase management has said to expect through the end of 2015.
2. PFB Corporation (TSX:PFB, OTC:PFBOF).
12/26/2013 Price: C$4.85. Low Target: C$4. High Target: C$6.
Annualized Dividend: C$0.24.
Current Price: C$4.83. YTD Total C$ Return: 2.1%. YTD Total US$ Return: 2.7%
Green building company PFB Corp did not release any news. The stock's partial reversal of earlier gains may have been the result of weaker numbers in the US housing market.
3. Capstone Infrastructure Corp (TSX:CSE. OTC:MCQPF).
12/26/2013 Price: C$4.05. Low Target: C$3. High Target: C$5.
Annualized Dividend: C$0.30.
Current Price: C$4.35. YTD Total C$ Return: 28.9% . YTD Total US$ Return: 29.7%
Independent power producer Capstone Infrastructure announced its regular quarterly dividend of C$0.075, payable to shareholders of record as of July 31st. After the stocks' recent gains, RBC Capital lowered its rating to "sector perform." I also think we have seen most of the gains we can expect from Capstone stock this year, but continue to hold my position. I think the 7.4 percent current yield remains quite attractive and could lead to additional small capital gains while affording significant downside protection.
4. Primary Energy Recycling Corp (TSX:PRI, OTC:PENGF).
12/26/2013 Price: C$4.93. Low Target: C$4. High Target: C$7.
Annualized Dividend: US$0.28.
Current Price: C$5.45. YTD Total C$ Return: 13.2% . YTD Total US$ Return: 13.9%
Waste heat recovery firm Primary Energy posted significant gains in June after confirming market rumors that it "is engaged in a strategic review process to generate shareholder value," although no agreement has been reached. The possibility that Primary Energy might be for sale was part of the reason I included the company in the portfolio at the start of the year.
5. Accell Group (Amsterdam:ACCEL, OTC:ACGPF).
12/26/2013 Price: €13.59. Annual Dividend €0.55 Low Target: €11.5. High Target: €18.
Current Price: €13.90. YTD Total € Return: 6.3% . YTD Total US$ Return: 7.0%