Renewable Dividends

Who doesn’t like a plump dividend payment?  OK, maybe a few in the highest tax brackets do not want the burden of more taxable income.  Otherwise, there is celebration to share in corporate bounty.  Despite a short history of operation, companies in the renewable energy industry have begun to payout excess earnings to shareholders.  A wide-ranging screen for renewable dividends found a number of payors.  Of course, renewable utilities stand out in the dividend world.

Several of the companies in our renewable-dividend stock screen have been featured in this forum in the past and a couple are just coming into view for the first time.  Over the next few posts we will look at these generous dividend payors with a view on how reliable are payouts from based on renewable power technologies. 

Company	Symbol	Operations	Yield
Algonquin Power & Utilities	AQN	Wind, solar, hydroelectric and thermal power generation	4.51%
Atlantica Sustainable Infrastructure Plc	AY	Natural gas and renewable energy transmission infrastructure	4.61%
Brookfield Renewable Partners LP	BEP	Hydroelectric, wind and solar power generation with pumped storage	3.13%
Clearway Energy, Inc.	CWEN	Wind, solar & natural gas power generation; based in New Jersey	4.91%
NextEra Energy Partners, LP	NEP	Wind and solar power generation and natural gas distribution	3.39%
Ormat Technologies, Inc.	ORA	Geothermal and recovered energy power generation and wholesale electricity sales	2.00%

 

Does continued competition from the conventional fossil fuel power sources means that renewable dividends are riskier?  Or is the reverse the case and should the oil and gas shareholder have an unpleasant surprise ahead?  Are renewable energy players fully aware of the risks in the industry?  Are technology flaws fully vetted?  Are government energy policies still too fickle to count on where renewable power is concerned?

These questions and more should be on the minds of dividend yield seekers.  The next few posts aim will offer some answers.        

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.