Wind energy is one of the fastest-growing sources of new electricity in the world, because building and operating a wind farm has become more cost effective than building and operating a coal, hydroelectric, or nuclear power facility. Wind farms also provide stable long-term cash flows for the companies that operate them, allowing them to return a significant amount of capital to their shareholders in the form of dividends.
With all of this in mind, let’s take a look at three wind-energy stocks with high and safe yields of 3-9% that you could add to your portfolio today.
1. TransAlta Renewables Inc.
TransAlta Renewables Inc. (TSX:RNW) is the largest producer of wind power in Canada and one of the largest producers of gas and hydroelectric power in Canada, the United States, and Australia. It owns and operates 16 wind farms and 12 hydroelectric facilities in Canada, and it holds economic interests in one wind farm in the United States and six gas facilities in Canada and Australia.
It pays a monthly dividend of $0.07333 per share, or $0.88 per share annually, which gives its stock a yield of about 7.7% at today’s levels.
It is also very important to note that TransAlta has raised its annual dividend payment for two consecutive years, and its recent increases, including its 9.1% hike in May 2015 and its 4.8% hike in January of this year, has it on pace for 2016 to mark the third consecutive year with an increase.
2. Pattern Energy Group Inc.
Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI) is one of the world’s largest independent generators of wind power. It owns and operates 16 wind farms, which consists of 10 in the United States, four in Canada, one in Chile, and one in Puerto Rico.
It pays a quarterly dividend of US$0.381 per share, or US$1.524 per share annually, which gives its stock a yield of about 8.7% at today’s levels.
Investors must also make two notes.
First, Pattern Energy has raised its dividend for eight consecutive quarters.
Second, it has raised its annual dividend payment for two consecutive years, and its recent hikes have it on pace for 2016 to mark the third consecutive year with an increase.
3. Boralex Inc.
Boralex Inc. (TSX:BLX) is the largest producer of onshore wind power in France and it is one of the largest producers of wind, hydroelectric, thermal, and solar power in Canada, the United States, and France. It owns and operates 64 facilities, which consists of 42 wind farms, 16 hydroelectric facilities, four solar facilities, and two thermal facilities.
It pays a quarterly dividend of $0.14 per share, or $0.56 per share annually, which gives its stock a yield of about 3.4% at today’s levels.
It is also important to note that Boralex raised its dividend by 7.7% in February, and this was its first increase since it initiated its dividend in 2014.
Should you buy one of these clean-energy stocks today?
TransAlta Renewables, Pattern Energy Group, and Boralex are three of the most attractive investment options in the wind energy industry. Foolish investors should take a closer look and strongly consider establishing positions in one of them today.
