Still Renewable, Still Paying Good Dividends

Income investors can also invest in clean energy.

Over the past four years, changes in Canadian tax law have led the renewable energy income trusts I introduced investors to in March 2007 to either be bought out like the Boralex Power Income Fund (bought by manager Boralex [BLX.TO, BRLXF.PK]) or convert to corporations like Algonquin Power and Utilities [AQN.TO, AQUNF.PK].

Those that converted to corporations are still out there, and still paying good dividends.  And while a few are gone because of mergers, there are also a few new ones that I did not mention in my 2007 article.  They are a great place to start for investors who want a green portfolio, but need income or can’t handle the stomach-turning gyrations of the solar or wind stocks.

Company (Canadian ticker, US Ticker)

Price

Yield

Mkt Cap

Sectors

Algonquin Power and Utilities (AQN.TO, AQUNF.PK)

C$4.95

4.8%

C$471M

Elec, Nat Gas,&Water distrib, cogen, biomass, hydro

Brookfield Renewable Power Fund (BRPFF.PK,BRC-UN.TO)

C$21.41

6.2%

C$2.2B

Conventional and run-of-river hydropower

Innergex Renewable Energy Inc. (INGXF.PK,INE.TO)

C$9.74

6.0%

C$580M

Run-of-river hydro and wind

Macquarie Power & Infrastructure Corp. (MCQPF.PK,MPT.TO)

C$8.43

7.8%

C$480M

Cogen, Wind, Hydro, Biomass, Solar, District heating

Northland Power Inc. (NPIFF.PK,NPI.TO)

C$15.81

6.8%

C$1.2B

Nat Gas, Wind, Biomass

As you can see, although these companies have become corporations, the yields will appeal to income investors. 

DISCLOSURE:  Long AQUNF, NPIFF.

DISCLAIMER: The information and trades provided here and in the comments are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. Please take the time to read the full disclaimer here.

This article was originally published on AltEnergyStocks.com and was reprinted with permission.

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Tom Konrad, PhD., CFA is a portfolio manager, financial analyst, and freelance writer specializing in renewable energy and energy efficiency. He is currently looking for a money management firm to sponsor what he believes would be the first dividend income oriented green mutual fund, based on a strategy, the Green Global Equity Income Portfolio, he has been managing since December 2013.  He is Editor at AltEnergyStocks.com.  Tom lives in New York's lower Hudson River Valley. He volunteers for the environmental nonprofit community, runs, and is a woodworker. He's currently using those woodworking skills to renovate (and upgrade the energy performance) of the 1930 farmhouse he lives in with his wife.

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