See You Later, Hannon Armstrong

With the extra time, we could see a quarterly dividend increase of as much as 3 cents (9 percent) in February or March, although I think 2 cents (6 percent) is more likely and a 1 cent dividend increase is still possible.

HASI stock closed at $24.16 on December 28th when I finalized the list. This would have given it an expected yield of 5.8% after my expected 6% dividend per share growth in 2018. I was also concerned that more insiders have been selling than buying the stock in recent months, and the last purchase was by CEO Jeff Eckel at 10% below the current price.

Given this, Hannon Armstrong’s valuation was simply not quite as good as the other stocks in the 10 for 2018 list. Nevertheless, it remains a significant holding, and it probably would have made the list if it were trading at $22.77, where it closed on Friday, January 5, and its price when I am writing this article.

Conclusion and Thoughts for 2018

I expect that Hannon Armstrong will continue to be a well run and conservative business in 2018, and that management will raise the dividend at the lower end of my predicted range this quarter. The low dividend growth will probably cause the stock to trade flat to slightly down for most of 2018, and patient investors will see excellent buying opportunities in the latter half of 2018.

If that possible stock price weakness persists through the end of the year, you can be assured that Hannon Armstrong will make a reappearance in Ten Clean Energy Stocks for 2019.

2018 Wrap Up

I now have the final returns for the 2018 model portfolio. It was a banner year, with a portfolio total return of 38.1% for the year, compared with its benchmark at 19.5%. My real money Green Global Equity Income Portfolio returned 22.5% and the eight income stocks returned 31.5%, both well ahead of their benchmark at 15.4%. The two growth stocks returned a whopping 64.1%, compared to their benchmark at 39%.

Individual stock performance is show in the chart below:

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Disclosure: Long HASI





DISCLAIMER: Past performance is ...

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