The Canadian renewable energy stocks we’ve discovered could win big with Joe Biden as U.S. President
SmallCapPower | August 28, 2020: Renewable energy stocks have, surprisingly, performed well under President Donald Trump, but are expected to do even better should Joe Biden win the U.S. Presidency, as he has pledged to create a green U.S. energy grid by 2035 and spend US$2 trillion on renewable energy infrastructure and clean-energy research and development over four years. Today we have uncovered three Canadian renewable energy stocks that should benefit most from a Biden Presidency, as these companies are targeting U.S. growth.
*Returns are based on closing stock prices as of August 27, 2020
Algonquin Power & Utilities Corp. (TSX:AQN) – $18.18
Algonquin Power owns a portfolio of long-term contracted wind, solar and hydroelectric generating facilities, representing over 2 GW of installed capacity and more than 1.4 GW of incremental renewable energy capacity under construction. Through its business groups, the Company provides rate-regulated natural gas, water, and electricity generation, transmission, and distribution utility services to over 805,000 customers. It also owns regulated water and energy utilities in the United States through Liberty Power and Liberty Utilities. Liberty Power owns a direct or indirect equity interest in more than 35 clean energy facilities. Algonquin Power has approximately US$11 billion of total assets. On July 30, 2020, Algonquin announced an agreement with Chevron Corporation to co-develop renewable power projects. AQN has a current dividend yield of 4.5%.
- One-Year Return: 15%
Innergex Renewable Energy Inc. (TSX:INE) – $22.59
Innergex Renewable Energy conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 68 operating facilities with an aggregate net installed capacity of 2,588 MW (gross 3,488 MW), including 37 hydroelectric facilities, 26 wind farms and five solar farms. Innergex also holds interests in seven projects under development, two of which are under construction, with a net installed capacity of 296 MW (gross 378 MW), and prospective projects at different stages of development with an aggregate gross capacity totaling 7,115 MW. In 2019, Innergex generated revenues from continuing operations that rose 16% year over year to $557.0 million, with a 16% increase in Adjusted EBITDA to $409.2 million. On July 15, 2020, Innergex Renewable Energy announced that it had acquired six operating wind farms in the United States. Innergex INE stock is currently yielding 3.2%.
- One-Year Return: 62%
Northland Power Inc. (TSX:NPI) – $37.38
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 3.2%.
- One-Year Return: 56%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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