Everyone loves a good comeback story, especially in the world of investing. When a strong company stumbles, it can open the door to long-term gains for patient investors. That’s what makes Innergex Renewable Energy (TSX:INE) a dividend stock worth watching right now. It’s down from its highs back in 2021, but its business remains as relevant as ever. If you’re looking for one magnificent Canadian stock to buy and hold for decades, this might be it.
Source: Getty Images
About INE
Innergex Renewable Energy is in the business of producing clean power. It owns and operates a mix of hydro, wind, and solar facilities across Canada, the United States, France, and Chile. The dividend stock is known for entering into long-term contracts, which give it steady and predictable revenue. And in an uncertain market, that kind of consistency matters.
As of writing, the stock trades around $13.75. That’s still well below its all-time high of over $32 a few years ago. Yet year to date, the stock has actually climbed about 74%! So while the comeback is underway, there’s still value here when considering past prices and future potential.
That being said, there is a reason INE stock has hit $13.75 and remained at this level. The company agreed to be acquired back in February for $13.75 per share. And while high growth may or may not be in the company’s future, don’t fear. Dividends still are.
Still paying out
The dividend stock released its first-quarter earnings in early May. Innergex reported revenue of $271.5 million. That was slightly below estimates, but its earnings per share (EPS) came in at a loss of $0.07, which matched analyst expectations. What impressed investors more was its full-year 2024 performance. It posted free cash flow per share of $1.06, up 24% from the year before, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $761 million. Those are strong numbers in a sector that has faced its fair share of headwinds.
Innergex also made some big moves in 2024. It completed its Boswell Springs wind project in Wyoming and signed new power purchase agreements in both Canada and Chile. These deals are long-term and help lock in future revenue. At the same time, Innergex has continued expanding its development pipeline.
Now that the pipeline will be in control of Caisse de dépôt et placement du Québec (CDPQ), which hopes to accelerate the company’s growth in the years to come.
Bottom line
The current annual dividend payout is $0.36 per share, which works out to a yield of about 2.6%. It’s not massive, but it’s a nice bonus for investors who value income. The dividend has remained steady in recent years, showing the dividend stock’s commitment to rewarding shareholders even as it invests in future projects.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| INE | $13.79 | 724 | $0.36 | $260.64 | Quarterly | $9,982.96 |
Yes, the stock has been volatile. And yes, interest rates and commodity costs can still impact margins. But for investors willing to collect while they can, Innergex offers a compelling case. It’s not just a recovery story. It’s a story about the future of energy.
