The U.S. is about to make history, thanks to the massive $1 trillion infrastructure package recently passed by the Senate, which includes plenty of money for upgrading the nation’s electrical grid. A major part of the plan will go towards renewable and clean energy – more than $73 billion in subsidies and spending. Firms owning and operating solar, wind and other renewable energy projects stand to win big as the package is turned into law and the dollars start rolling out.
This includes our pick in the utility sector.
Our pick is already one of the largest producers of renewable energy in the nation, producing half of its 4,500 MW generation capacity from hydroelectric power. But our pick also continues to expand and modernize its grid infrastructure through smart metering, solar and wind projects. The bipartisan bill will only strengthen that resolve further and help bring home plenty of rate increases and additional revenue opportunities.
Additionally, the continued growth in its operating region will be a secondary boon to its bottom line. Thanks to its operating area, our pick does business in one of the hottest and fastest-growing sections of the country. Filled with tech and healthcare start-ups, our pick has continued to see tremendous demand for energy, and with increasing demand, its customers are calling for that power to be produced cleanly. With the passage of the infrastructure bill and additional funding for renewables, our pick stands ready to be one of the top winners in the years ahead.
This will only add to its appeal as a top dividend growth investment.
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%+ towards the end of 2020.
- Big winner from the new infrastructure bill with its grid modernization and renewable energy plans.
- Earnings jumped by more than 15% last quarter, as the economy re-opened in its core-operating area and demand picked up.
- Healthy payout ratio of 57% and yield of 2.6%.
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.
