These renewables offer high, sustainable yields

Article Excerpt

With a focus on renewable energy, these two power generators hold a lot of conceptual appeal for investors. Even more important to income-focused investors is their stable cash flows from a diverse mix of hydroelectric, wind and solar assets. That diversity, plus their long-term contracts, will let these utility firms continue to build out their operations and add to your sustainable dividends. ALGONQUIN POWER & UTILITIES, $17.78, is a buy. The utility (Toronto symbol AQN; Shares o/s: 675.6 million; Market cap: $12.0 billion; TSINetwork Rating: Extra Risk; Yield: 4.9%; www.algonquinpower.com) has two main businesses: the Regulated Services Group provides regulated electricity, gas, water distribution and wastewater collection services in Canada, the U.S., Chile and Bermuda; and the Renewable Power Group produces electricity from about 40 clean-energy plants in North America. Through their Algonquin shares, investors also tap the company’s 44.2% stake in Atlantica Yield plc (symbol AY on Nasdaq). That business operates global renewable energy assets. As well. Algonquin is now buying Kentucky Power for $3.5…