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Canada’s renewable energy investments paying off

Green power rallies  Toronto Sun, 15 Nov 10, VANCOUVER – Backing Canada’s leading renewable energy companies wasn’t just a feel-good venture this past year. It made investors rich as shares of big producers enjoyed market-beating returns.But the rally — driven by a combination of yield-hungry investors, high payouts and a low interest rate environment — has left investors asking how much upside is still left…..

Producers and developers of power from hydro dams, wind, the sun and biomass have a strong fan base, but their appeal isn’t primarily environmental.

Many boast dividend yields above 5%, plus growth prospects that could boost their share prices and payout. Recent Canadian winners include big independent green power producers like Brookfield Renewable Power Fund and Innergex Renewable Energy.

Consistent cash flows from long-term contracts with utilities have brought dividend yields of 5% to 9% for Brookfield, Northland Power Income Fund and others, regular income that is increasingly important for investors, especially retiring baby boomers, as bond yields fall.

Canada’s benchmark 10-year bond yields about 3% and the S&P/TSX composite index has a dividend yield of about 2.7%…….

November 17, 2010 - Posted by Christina Macpherson | Canada, renewable | climate change, energy efficiency, renewable energy