Many investors are becoming responsible and building a green portfolio. If you want to join the bandwagon, four Canadian renewable energy stocks could also put you in the green in 2023.
High-quality asset base
Algonquin Power & Utilities (TSX: AQN) is flying high in 2023. At $11.37% per share, the growth stock is up +30.63% year to date and pays a 5.09% dividend. This $7.82 billion renewable energy and regulated utility company anchors its business strategy on growth, operational excellence, and sustainability.
In 2022, revenue and adjusted net earnings increased 22% and 6% to US$2.76 billion and US$474.9 million versus 2021. Notably, cash provided by operating activities rose 293% year over year to US$619.1 million.
Arun Banskota, Algonquin’s president and chief executive officer (CEO), said the high-quality asset base supports business growth. Algonquin will leverage its skills and expertise to capitalize on the energy transition and deliver shareholder value.
Bright outlook
Kingsey Falls-based Boralex (TSX: BLX) specializes in four renewable energy sectors (wind, solar, hydroelectricity, and storage). It has established businesses in the U.S., France, and the United Kingdom. Management focuses on renewable energy production sites that can deliver attractive, risk-adjusted returns on invested capital.
The outlook is very bright for the $4.27 billion company. Its president and CEO Patrick Decostre said, “Fiscal 2022 was marked by a significant increase in our generating capacity and project portfolio.” Boralex the milestone of three gigawatts in installed capacity at year-end. At $41.55 per share, investors enjoy a 4.31% year-to-date gain in addition to the modest 1.59% dividend.
Regional leader
Polaris Renewable Energy (TSX: PIF) owns and operates renewable energy projects in the Americas. Market analysts covering this green stock are bullish and recommend a buy rating. Their 12-month average price target is $27.43, or 106.4% higher than its current share price of $13.29 (-4.23% year to date). The bonus to prospective investors is the lucrative 6.11% dividend yield.
The $279.43 million company operates in five Latin American countries. Apart from one geothermal plant, Polaris has four run-of-the-river hydroelectric power plants, one photovoltaic solar farm, and two under-construction solar projects.
In 2022, total revenue and net earnings increased 5.21% and 398.8% year over year to $62.6 million and $2.49 million. Marc Murnaghan, CEO of Polaris, said management would take advantage of growth opportunities in the region through its developments and opportunistic acquisitions.
Long growth runway
Innergex Renewable Energy (TSX: INE) stock is underperforming in 2023 at -7.31% year to date but deserves serious consideration. Besides North America (Canada and the U.S.), the $3 billion company also operates high-quality, long-lasting renewable installations in Chile and France.
Management anchors its sustainable business model on a geographically diversified portfolio (hydro, wind, and solar energy). The 87 operating facilities have an aggregate net installed capacity of 3,694 megawatts (MW) (4,244 MW gross). There are 11 projects under development and five energy storage facilities under construction.
Current and upcoming projects should generate sustainable cash flows and enhance shareholder value. If you invest today ($14.83 per share), the stock pays a lucrative 4.86% dividend.
Superior returns soon
Expect investments in energy sources like wind, solar, and water that naturally replenishes to deliver superior returns soon. The four green stocks are major players in the transition to clean energy.
