My Top 3 Renewable Clean Energy Dividend Companies
Why do we invest in renewable clean energy?
- Reduces air pollution, strengthen the health of our people. It can help avoid greenhouse gas emissions and protect communities from dangerous effects of climate change
- The cheapest source of new power generation for more than two-thirds of the world and has no fuel costs. Higher total returns relative to fossil fuels.
- They have a history of continuous paying and growing dividend.
- The world is expected to install over 198 GW of renewable capacity in 2020, breaking another record and accounting for almost 90% of the increase in total power capacity.
Below is our list of My Top 3 Renewable Clean Energy Dividend Growth Stocks in our Portfolio. These stocks are the core of our holdings, so we plan to keep these stocks forever. In addition, our plan is to increase these stocks until we can achieve a reasonable dividend income per year.
Algonquin Power & Utilities Corp. is a $10 billion regulated utility and renewable company that operates in North America. It generates and sells electrical energy through non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with generating capacity of approximately gigawatt; and regulated electric, natural gas, water distribution, and wastewater collection utility systems.
- Sector: Utilities
- Industry: Utilities-Renewable
- PE Ratio: 18.177
- Dividend: $0.82
- Dividend Yield: 4.55%
- 5 Year Dividend Growth: 12.40%
- Dividend Payout Ratio: 76.22%
- Dividend Increase Streak: 10 years
The company has paid dividends for over 15 years to its shareholders. In May 2020, AQN announced a 10 % increase to the dividend, increasing the quarterly dividend to $0.2191. This translates into $0.82 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $0.24 in 2010, compared to $0.82 in 2020. Dividends per share have grown at approximately 13.70% per year over this time.
Overall, AQN has all key ingredients for a top dividend growth stock: long dividend streak, good dividend growth history, high dividend yield comparing to its peers, above average earning growth. Because of these reasons, AQN is currently in the top 10 holding of our portfolio. Currently, we are holding 902 shares of AQN and generating $744.51/year of dividend income. In conclusion, we will continue to add more shares until we reach $1000/year of dividend income.
Brookfield Renewable Energy is a global leader in hydroelectric power, which comprises approximately 64% of its portfolio. It is also an experienced owner, operator and investor of global wind, solar, distributed generation, and storage facilities.
Its portfolio consists of approximately 19,300 MW of capacity and 5,301 generating facilities in North America, South America, Europe and Asia. Its investment objective is to deliver long-term annualized total returns of 12%-15%, including annual distribution increases of 5–9% from organic cash flow growth and project development. It has an established track record of creating value by prudently acquiring, building and financing assets, and actively managing its operations.
- Sector: Utilities
- Industry: Utilities-Renewable
- PE Ratio: N/A
- Dividend: $2.35
- Dividend Yield: 4.08%
- 5 Year Dividend Growth: 8.80%
- Dividend Payout Ratio: 53.74%
- Dividend Increase Streak: 11 years
Brookfield Renewable Energy has paid dividends for over 15 years to its shareholders. In February 2020, Brookfield Renewable Energy announced a 10 % increase to the dividend, increasing the quarterly dividend to $0.54. This translates into $2.16 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $0.24 in 2010, compared to $0.82 this year. Dividends per share have grown at approximately 13.70% per year over this time.
In conclusion, Brookfield Renewable Energy has all key ingredients for a top dividend growth stock: long dividend streak, good dividend growth history, high dividend yield comparing to its peers, above average earning growth. Because of these reasons, Brookfield Renewable Energy is standing in the top 10 holding of our portfolio. Currently, we are holding 232 shares of Brookfield Renewable Energy and generating $522.00/year of dividend income. In conclusion, we will continue to add more shares until we reach $1000/year of dividend income.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns two electric companies in Florida: Florida Power & Light Company, which serves more than 5 million customer accounts in Florida and is the largest rate-regulated electric utility in the United States as measured by retail electricity produced and sold; and Gulf Power Company, which serves approximately 470,000 customers in eight counties throughout northwest Florida. NextEra Energy also owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage.
NextEra Energy has paid dividends for over 15 years to its shareholders. In February 2020, NextEra Energy announced a 12 % increase to the dividend, increasing the quarterly dividend to $0.35 (or $1.40 before split). This translates into $1.40 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $0.125 in 2010 (After Split 4:1), compared to $0.35 this year. Dividends per share have grown at approximately 10.20% per year over this time.
Overall, NextEra Energy has all key ingredients for a top dividend growth stock: long dividend streak, good dividend growth history, high dividend yield comparing to its peers, above average earning growth. Because of these reasons, NextEra Energy will be our top 10 holding of our portfolio. Currently, we are holding 100 shares of NextEra Energy and generating $140.00/year of dividend income. In conclusion, we will continue to add more shares until we reach 300 shares.
Conclusion
There are other companies that could make My Top 3 Renewable Clean Dividend Growth stocks. We believe this list providing strong dividend income growth, and excellent capital appreciation.
If you are dividend investor, it is more valuable to focus on dividend growth instead of yield. The following criteria should be based on for picking a good dividend growth stock: P/E ratio, payout ratio, current yield, paying dividend history and the 5 and 10 year annual dividend growth rate.
Thanks you for reading our blog.
Sam
Disclaimer
I am not a licensed investment Advisor or Tax professional; Therefore all content posted on this blog represents my personal views and opinions and should never be considered as professional advice. This blog should be viewed for entertainment or educational purposes only. Not a recommendation to buy/sell certain stocks. Please do your own research before buy/sell stocks.
We try our best to provide the accuracy of the information; however we does not guarantee the accuracy of the information on this page due to the dynamic nature of the information provided.
We own shares of all companies in the above list.