It may be wise to take some risk off the table. You know, those venerable names that offer dependable dividends and low volatility, but aren’t exactly setting the world on fire appreciation-wise. First, the company’s payout ratio of 57.6% is fairly low, considering other utilities have payout ratios above 70%. With a 73.5% payout ratio, there’s still room to grow the current payout. The rent increases every year and makes its cash flows predictable, allowing it to manage debt and pay dividends. Before the crisis, shares traded just above $75 per share. That makes it a great clean energy dividend for investors with lots of upside as the solar industry grows. Current as of October 1, 2020. A yieldco that focuses on wind is Pattern Energy Group Inc., which has built wind farms for Amazon.com, Google, and Wal-Mart, to name a few. Taking into consideration the low interest rates environment, and even if the dividends were to revert to its 5 years lowest, the yield still comes in at a solid 7.14%. Like its neighbor Dominion, this utility name also provides power in the southeastern United States.

You already own Enbridge and RioCan? Copyright © 2020 InvestorPlace Media, LLC. Let's conquer your financial goals together...faster. However, rock-bottom rates should not serve as an end to your dividend … But it maintained its dividend per share at $1.38 for four years. Image source: SunPower. And with the cash flows from wind projects contracted for decades to come, that payout could pay off for a long time for investors. I’m talking about utilities stocks. As I wrote in a recent article, PPL stock is a strong dividend play, sporting a generous yield. But the operations across the pond make up the largest part of its business. As commentators noted back in April, a lack of market growth, along with California wildfire risks, make this a riskier name, especially when compares to the other utilities stocks mentioned in this article. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Simply click here to discover how you can take advantage of this. It is facing the same three risks. This diversification mitigates the impact of losing customers on its cash flows. Before the crisis, this stock traded above $100 per share. This is your chance to get in early on what could prove to be very special investment advice. So what’s the reason for the discrepancy? However, keep in mind the company’s very high dividend payout ratio (86.3%). Providing electricity and gas in yes, the southern United States, shares today yield more than 5%. Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. Another party watching over the acquisition of new assets helps reduce risk of being held captive by the sponsor.

So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you. 4 Clean Energy Stocks With Dividend Yields Over 6% If you're looking for big, stable dividends, clean energy is worth a look in 2017. In early September, the market saw a correction, as retail investors cashed out some profits and invested a portion of their money in gold stocks. Screening across large caps in this sector, these 7 come to mind as opportunities with reassuring dividends: All seven offer dividends of 4% or greater, a strong selling point in a zero-interest rate world. Like Con Ed and Edison International, EXC stock is another utility name that has yet to recover from its coronavirus lows. Many capital-intensive companies have raised their liquidity to withstand the COVID-19 crisis. What makes Hannon Armstrong attractive in today's energy market is its flexibility in the assets it funds.

Article printed from InvestorPlace Media, https://investorplace.com/2020/07/7-utilities-stocks-buy-reassuring-dividends/. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. But with near-term headwinds like the pandemic priced in, this is yet another stable dividend play to buy in case market turmoil continues. Or do you chase the seemingly-endless rally in big tech names right now? #2 CDW Holding Limited.

Dividend talks are incomplete without Enbridge , a Dividend Aristocrat with a 25-year history of paying regular incremental dividends. But it has maintained its dividend per share. With a high, but not too high payout ratio (71.6%), and historically modest dividend increases (average of 3.3% over the past five years), expect this venerable name to continue raising its dividend. It could pay excessively high prices or take on risks it wouldn't normally take without independent oversight. It provides debt and equity financing to governments and large corporations that want the savings of efficiency or clean energy without the financial outlay. 13 Dividend Stocks That Have Paid Investors for 100+ Years Here are 13 dividend stocks that each boast a rich history of uninterrupted payouts to … After two years, the stock recovered, growing 107%. If things recover sooner than later, you could see shares bounce 44% from today’s prices. When looking at dividend stocks, you should look at their cash inflows and their liabilities and understand the factors that could hamper their cash flows. In short, SO is another strong contender for investors looking for stable dividends and growth opportunities. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. These businesses pay a certain percentage of their cash flow as dividends and retain the remaining cash flow to invest in the business. Income investors should consider the many benefits of utilities stocks right now. But more importantly, these low-volatility names with stable dividends are a lower risk area to invest, as market turmoil may or may not continue. Returns since inception, October 2013. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. That's a combination investors in clean energy should love. Hannon Armstrong Sustainable Infrastructure Capital finances everything from renewable power plants to efficiency programs. With a payout ratio of 68% and 20 years of consecutive dividend growth, today’s high yield isn’t the market telling you something’s wrong with this stock. Not to alarm you, but you’re about to miss an important event. This is a booming market right now as companies look for ways to buy clean energy for their businesses without outlaying the funds for construction. Clean energy has become the biggest source of new investment for utilities and companies around the country. The utility giant, which provides power and gas to customers in Virginia and the Carolinas, remains one of the highest-yielding utility stocks out there, with a forward yield of 4.7%. Like with some of the other names mentioned here, you can get paid while you wait for shares to bounce back. That being said, Edison International may be a worthy buy for income investors. Right now, the stock yields 6.5%, and with NRG Yield's pipeline of renewable energy assets, I think there's plenty of room for growth. All rights reserved. 2020 InvestorPlace Media, LLC. While most of the market is focused on how to fund wind or solar projects, Hannon Armstrong is looking at efficiency and other infrastructure improvements that provide strong returns and low risk.

As I discussed previously, there’s some risk involved with its U.K. operations. Yet with this high yield come some concerns. However, its resilient pipeline utility model makes cash flow predictable, giving the company ample time to make necessary arrangements. And shares could move higher, as a low-interest rate environment increases demand for stable dividend stocks by income investors. Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. © 2020 The Motley Fool Canada, ULC. With the stock now changing hands around $55 per share, that’s major potential share price upside in a recovery. Yet, despite also announcing a guidance cut earlier this year, this is another company to keep an eye on. Cumulative Growth of a $10,000 Investment in Stock Advisor, Copyright, Trademark and Patent Information. The fear of a looming recession has raised concerns around some companies’ profitability and cash flows. 8point3 Energy Partners LP is the yieldco creation of First Solar and SunPower, two of the largest solar developers in the world. Around $79 per share. As a yieldco with a utility tie, NRG Yield can also be an opportunistic buyer of assets that come available in the open market. With a 4.4% dividend yield, low payout ratio of 51.7% and slow but stable dividend growth (3.2% over the past five years), this is another “heads I win, tails I don’t lose as much” opportunity. Today, it's primarily a renewable energy company with over 4 GW of generating assets. During a downturn, it suffers from credit losses, reduced property prices, and lower occupancy.

In other words, if the actual risk winds up being lower than it has been perceived, expect this name to bounce back to its pre-pandemic price levels. Consider shares a buy at today’s prices around $80 per share, and a screaming buy if the stock heads lower from here. And as our own Louis Navellier wrote last month, The Southern Company has faced hiccups in the past, such as its failed attempt to build the first new nuclear power plant in decades. But companies are going to drive the industry forward, which plays into Pattern Energy Group's hands because it is its core business. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. Recent coronavirus news doesn’t bode well for the fading “V-shaped recovery” thesis. Is there more risk with PPL than the 4%-5% yielding names mentioned above? And don’t worry too much about the dividend heading lower from here. But if you are hungry for yield and willing to trade some stability for appreciation potential, keep EIX stock on your shortlist. 8point3 Energy Partners' 7.4% dividend yield comes with long-term contracts with high-quality counterparties and a relatively low leverage balance sheet as well. The structure allows the company to finance unique opportunities that other energy companies may overlook. That doesn’t mean it’s too late to buy into Dominion Energy. One of the first yieldcos on the market was NRG Yield. Collect the 6.6% yield and bide your time. Enbridge’s cash flow will take a hit when the economy slows, oil demand falls, or its major projects are stuck in regulatory and environmental issues. The most egregious example is TerraForm Global buying 425 MW of uncompleted Indian projects from SunEdison, only to see SunEdison go into bankruptcy and never get the projects completed.