One of the hottest long-term trends these days continues to be the adoption of renewable and green energy solutions. Thanks to both statewide and federal programs, renewable generation has surged in recent years. And while those producers of solar panels, wind turbines and other necessary green hardware are basking in the sunshine, the real money is being made in those firms owning the generation assets.
Case in point, our Best Dividend Stocks List’s pick in the utility sector.
As one of the largest producers of renewable energy in the nation, our pick has been able to feast on lucrative tax credits and higher electricity rates. And with the Biden administration now pushing renewables even further into the grid, our pick has a long runway to profit from its fleet of generation assets.
At the same time, our pick continues to benefit another way – it’s location.
Regional utilities are made or broken by their operating areas. Luckily for our pick, it just so happens to be located in a fast-growing area of the nation. Our pick’s operating state has more than doubled the average population growth for the rest of the nation. Moreover, the region’s economy has been steady and stable during the pandemic, which has helped the firms in the sector see strong cash flows throughout the latest economic malaise.
No wonder management was able to raise the firm’s dividend for the 9th consecutive year.
For investors, our pick represents the best of both worlds. A steady utility that pays dividends and a high growth stock.
To summarize, here are five reasons why you should own this stock:
- Operates a monopoly in a fast-growing region of the country full of manufacturing and tech firms.
- Paid a dividend every quarter since the 1940s and continues to increase that payout – the last jump was 6%+ in November.
- Big winner from the shift toward renewables and the smart grid with new investments in modernization and a carbon-free pledge.
- Favorable regulatory environment in one of the fastest-growing areas of the nation.
- Healthy payout ratio of 59% and yield of 2.75%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.
