The Canadian renewable energy dividend stocks we’ve discovered have favourable tailwinds over the next few years
SmallCapPower | October 13, 2020: The U.S. Energy Information Administration reported that U.S. electricity generation from coal fell 22% from 2016 to 2019, while generation from renewables (excluding hydro and nuclear) increased 34% over the same period. A big reason for this is the sharp drop in the cost of wind and solar power. The unsubsidized cost of wind energy has decreased by 70% over the past decade, while the cost of solar energy has declined by 89% according to asset management firm Lazard. Today we have uncovered three top Canadian renewable energy dividend stocks expected to continue to outperform for the foreseeable future.
*Returns are based on closing stock prices as of October 9, 2020
Northland Power Inc. (TSX:NPI) – $42.27
Northland Power is a global developer, owner and operator of sustainable infrastructure assets. The Company owns, or has an economic interest in, 2,429 MW (net 2,014 MW) of operating generating capacity and 382 MW of generating capacity under construction, representing the Deutsche Bucht offshore wind project in the German North Sea and the La Lucha solar project in Mexico. Northland also owns a 60% equity stake in the 1,044 MW Hai Long projects under development in Taiwan and operates a regulated utility business in Colombia. NPI stock is currently yielding 2.8%.
- One-Year Return: 73%
Boralex Inc. (TSX:BLX) – $42.23
Boralex focuses on developing, building and operating renewable energy power facilities located in Canada, France, UK and U.S. The Company has experience in four power generation types: 1) wind; 2) hydroelectric; 3) thermal; and 4) solar. Boralex has an installed capacity of 2,055 MW and is France’s largest independent producer of onshore wind power. BLX stock is currently yielding 1.6%.
- One-Year Return: 93%
Brookfield Renewable Partners L.P. (TSX:BEP.UN) – $68.50
Brookfield Renewable Partners has a portfolio that consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals more than 19,000 megawatts of installed capacity as well as an 18,000 megawatt development pipeline. Hydroelectric power comprises approximately 64% of the Company’s portfolio. Brookfield Renewable’s investment objective is to deliver long-term annualized total returns of 12% to 15%, including annual distribution increases of 5% to 9% from organic cash flow growth and project development. BEP.UN units are currently yielding 3.4%.
- One-Year Return: 68%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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