Is Innergex Renewables (TSE:INE) The Renewable Energy Stock To Buy?

The renewable industry is one of the hottest in the market right now, and some Canadian dividend stocks are in the mix. Pro-climate change agendas by governments worldwide have increased investor interest in this industry that was dormant for quite a few years.

windmill on grass field during golden hour

Image Source: Unsplash

The industry remains attractive to investors despite retreat from all-time highs

The rise started in earnest in 2019 and accelerated in 2020 as President Biden won the U.S. election with a notable climate change agenda. Although the industry has retreated from all-time highs this month, it still remains an attractive opportunity for investors.

One renewable energy stock that doesn’t get quite as much attention as its peers is Innergex Renewables (TSX:INE) (OTC PNK: INGXF). This is likely because Innergex is one of the smallest renewables on the TSX Index.

With a market cap of approximately $4.8B, Innergex is a 100% renewable energy company and it operates in three segments:

  • Hydroelectricity: Created by harnessing energy from running water. This type of energy is known to generate large amounts of power and is the most-widely used source of renewable energy today.
  • Wind: Largely characterized by their large turbines, wind energy is one of the fastest-growing types of energy in the world.
  • Solar: Once cost-prohibitive, solar is becoming a more viable source of energy and as the company puts it: “is the result of the most abundant and unlimited resource there is, the sun”.

Strong growth prospects

Innergex has operations worldwide and has 75 generating assets with an installed capacity of 3,694 MW. The company also has approximately 7,000 MW of capacity in its pipeline of projects with some flagship projects in Hawaii, Saskatchewan, and Texas.

The company’s robust pipeline of projects has enabled the company to reach record production numbers. Through the first nine months of 2020, it generated 5,886 GW of energy, up 25% year-over-year. The majority of production increase came from wind and solar power, as it has put a few projects into commission and closed on several acquisitions.

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Disclosure: The writer of this article may have positions in the securities mentioned in this article. The fact they hold positions in securities has had no impact on the production of this ...

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