Tom Konrad CFA
Income investors can also invest in clean energy.
Over the past four years, changes in Canadian tax law have led the renewable energy income trusts I introduced investors to in March 2007 to either be bought out like the Boralex Power Income Fund (bought by manager Boralex [BLX.TO, BRLXF.PK]) or convert to corporations like Algonquin Power and Utilities [AQN.TO, AQUNF.PK].
Those that converted to corporations are still out there, and still paying good dividends. And while a few are gone because of mergers, there are also a few new ones that I did not mention in my 2007 article. They are a great place to start for investors who want a green portfolio, but need income or can’t handle the stomach-turning gyrations of the solar or wind stocks.
I’ve listed the funds I know of in the table below, along with their current dividends and the sectors they invest in.
|Company (Canadian ticker, US Ticker)||Price||Yield||Mkt Cap||Sectors|
|Algonquin Power and Utilities (AQN.TO, AQUNF.PK)||C$4.95||4.8%||C$471M||Elec, Nat Gas,&Water distrib, cogen, biomass, hydro|
|Brookfield Renewable Power Fund (BRPFF.PK,BRC-UN.TO)||C$21.41||6.2%||C$2.2B||Conventional and run-of-river hydropower|
|Innergex Renewable Energy Inc. (INGXF.PK,INE.TO)||C$9.74||6.0%||C$580M||Run-of-river hydro and wind|
|Macquarie Power & Infrastructure Corp. (MCQPF.PK,MPT.TO)||C$8.43||7.8%||C$480M||Cogen, Wind, Hydro, Biomass, Solar, District heating|
|Northland Power Inc. (NPIFF.PK,NPI.TO)||C$15.81||6.8%||C$1.2B||Nat Gas, Wind, Biomass|
As you can see, although these companies have become corporations, the yields will appeal to income investors.
DISCLOSURE: Long AQUNF, NPIFF.
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