Canadian investors are always looking for some extra income. And yet most of the time, new investors tend to look to growth stocks or even meme stocks before digging into long-term options – or even better, digging into dividend options.
That’s why renewable energy offers such a strong opportunity. Canadian investors can get the growth they crave, while also achieving substantial dividend income. In fact, in the case of Northland Power (TSX: NPI), they can achieve dividend income each and every month!
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About NPI
Northland Power is a renewable energy dividend stock involved in a diverse range of renewable energy options. The Canadian-based, globally active power producer, founded in 1987, began modestly but has built itself into a huge energy powerhouse.
The company currently operates in a mix of diversified energy products. This includes locations in Canada, the United States, Germany, and more. Furthermore, it has been looking to expand to even more locations in Europe, as well as Asia.
Into earnings
The dividend stock may have been introduced in 1997 to the TSX, but it has been no less exciting. This was witnessed during its most recent earnings report for the second quarter. NPI announced it completed the Oneida energy storage project ahead of schedule and under budget. Plus, its Hai Long and Baltic Power offshore wind projects also made progress.
Now granted, the company reported lower revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) compared to the same quarter last year. This was due to lower wind resources affecting offshore wind production, plus maintenance outages. The company has since revised its financial guidance for 2025.
Looking ahead
However, that could mean there’s an opportunity. After seeing a drop, production could climb back up. That could mean the $5.9 billion company could be a steal, trading at 14 times earnings and offering a dividend yield at 5.4%. Given the way that the world is heading, renewable energy is clearly the future. So investing in a dividend stock that’s been around for so long in this sector is a safe and simple way to get involved in this growth sector.
In fact, given the company’s high dividend and value, it now offers a strong opportunity for dividend seekers. If investors put $7,000 into this dividend stock right now, they could walk away with annual income of $375, or $31 each and every month! And that’s money you can use for bills, groceries, fun, or simply reinvest for the future. Cash that every investor can use, no matter what you need to use it for.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| NPI | $22.41 | 312 | $1.20 | $374.40 | Monthly | $6,991.92 |
Bottom line
The main key here is not to judge a book by its cover. While earnings were down this quarter, there is more production ramping up and even more underway. With a 5.4% dividend yield, a diverse set of renewable energy options, and growth in new regions, this is a dividend stock practically every Canadian investor should consider.
