Renewable energy stocks seem to have caught investors’ attention like never before, resulting in their enormously high valuations. While companies focusing on technology, such as fuel cells or solar power components, keep on grabbing headlines, several not-so-popular renewable energy infrastructure companies and utilities continue to grow their top and bottom lines. Here are five such companies that not only provide alluring growth prospects, but appealing dividends too.
Brookfield Renewable Partners
Brookfield Renewable (NYSE:BEP) (NYSE:BEPC) primarily generates power from hydro, wind, and solar sources. Nearly two-thirds of the company’s generation is from hydropower. It recently made a big bet on distributed solar generation by acquiring $810 million of Exelon’s solar assets.
The company has done a commendable job of growing its revenues and funds from operations over the years, both organically and through acquisitions. In the latest quarter, the company grew its generation by 10% and funds from operations by 18%. Brookfield Renewable raised its dividend by 5% in the fourth quarter and expects to grow it by 5% to 9% annually. In addition to attractive growth prospects, the stock currently offers a dividend yield of 2.7%.
Atlantica Sustainable Infrastructure
Atlantica Sustainable Infrastructure (NASDAQ:AY) primarily owns and manages renewable energy assets with long-term revenue contracts. Nearly 70% of the company’s cash flows come from renewable energy generation. It is also involved in gas-fired generation, electric transmission, and water desalination. Nearly 45% of the company’s assets are in North America, while roughly 35% are in Europe.
In the first nine months of 2020, the company grew its cash available for distribution (CAFD) by 6.4% year over year. Atlantica Sustainable has shown a decent growth after separating from its troubled parent Abengoa at the end of 2015. The company targets growth investments of $200 million to $300 million per year. In 2020, it invested, or reached agreements to invest, around $322 million in growth projects. All in all, Atlantica Sustainable Infrastructure’s 3.7% dividend yield looks to be on a sustainable footing.
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