Green power trend fuels Innergex

Article Excerpt

Innergex continues to focus on renewable power projects. Although it has used acquisitions to expand, particularly outside of Canada, it cuts that risk by taking on partners with local knowledge. The company’s strategy should continue to pay off as governments around the world move to phase out their power plants that burn fossil fuels and switch to green power. That government support makes it easier for Innergex to pursue new growth projects and acquisitions. The extra cash flow from its new businesses should also let it keep raising its dividend. INNERGEX RENEWABLE ENERGY INC. $15 (Toronto symbol INE; High-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 133.6 million; Market cap: $2.0 billion; Dividend yield 4.7%; Dividend Sustainability Rating: Above Average; www.innergex.com) began operating in 1990, but waited until 2003 to sell shares to the public (as Innergex Power Income Fund). In 2010, the fund converted to a regular corporation. Innergex currently operates 37 hydroelectric plants (40% of revenue), 25 wind farms (57%) and four solar power…