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Major financial markets globally promoted sustainable investing in 2020, hoping to tap people who wish to support environmentally responsible companies. The TSX has sound choices if you want to contribute to a more sustainable future and earn healthy long-term returns.
The shift from fossil fuels to cleaner energy sources is happening and should accelerate due to climate concerns. Renewable energy will be at the front and center of this transition, while green stocks should generate heightened interest.
Today, a Canadian global power producer is a compelling investment opportunity for socially conscious investors. Besides its good growth and earnings prospects, an energy transition leader has taken over the rein to lead the company’s future.
Global footprint
Northland Power (TSX:NPI) operates in growth markets and boasts a significant construction pipeline. The $5 billion renewable energy company will execute $16 billion of construction in the next two to three years, which should secure its financial growth.
Besides the growth markets in Canada, the U.S., and Taiwan, the priority markets for offshore wind include Poland, Scotland, and South Korea. Under Northland’s fully funded program, Hai Long in Taiwan and Baltic Power in the Polish coastline will generate their first power outputs in the second half of 2025 and the first half of 2026, respectively.
Regarding assets and infrastructure, the onshore and offshore wind facilities have a total annual production of more than 5,000 GWh. The 13 ground-mounted solar projects in Canada produce nearly 200 GWh annually.
Northland ventured into Colombia’s regulated utility industry in 2020 by acquiring a 99.2% ownership stake share of the premier regulated utility Empresa de Energía de Boyacá, the country’s premier regulated utility firm.
New Chief Executive
Christine Healy officially assumed the position of President and CEO on February 5, 2025, and is also a board member. Before this appointment, she was President of AtkinsRéalis Group. She is on the Board of Directors at Canadian Natural Resources Limited. The energy transition executive will bring three large construction programs to commercial operations.
“The Company has established itself as a leader in sustainable energy solutions, and I am eager to build on this strong foundation,” Healy said. “I am excited about the journey ahead and look forward to contributing to Northland’s continued success.”
Strong financial performance
Northland Power achieved the high end of its 2024 financial guidance because of strong operating results. In the 12 months ended December 31, 2024, energy sales and cash provided by operating activities rose 5.1% and 27% year-over-year to $2.4 billion and $1 billion, respectively . Net income reached $371.4 million compared to the $96.1 million net loss in 2023.
Healy said, “Our growth outlook for energy transition and demand for power is stronger than ever.” She added that some construction projects in Canada, Poland, and Taiwan will start contributing to earnings in 2025 and continue through 2026, with full realization in 2027.
Your earnings potential
The green stock trades at $18.95 per share, up 7.1%-plus year-to-date versus the TSX’s 0.71% decline. If you invest today, Northland Power pays a hefty 6.3% dividend and is among the few monthly dividend payers. A $500 investment today could grow exponentially in the long term, and you’ll collect regular income streams as a bonus.
