Q: What do you think of their latest quarterly report from Innergex? The market never likes to see a cut in a dividend , and reacted accordingly
.Are there better alternatives in the renewable energy space , and would you please rank them . i already own BEP.UN
.Are there better alternatives in the renewable energy space , and would you please rank them . i already own BEP.UN
5i Research Answer:
Yes, a 50% dividend cut never goes over well with utility investors. This of course was followed by a bunch of broker downgrades. The company targets a new payout ratio of 30% to 50%. 4Q EPS was a loss of 3.3c, better than estimates. Revenue of $204.9M was 13% short of estimates. EBITDA was 4% better. The company wants to increase capital growth and claims the dividend cut helps that, but at the same time it put in a share buyback which will use up capital if utilized. Investor confusion thus reigns supreme here. With its small size and big decline over the past year (40%) it is hard to endorse this after the dividend cut. We would see FTS, H, BEPC (ranked) as better in the sector.