#7 - Atlantica Sustainable Infrastructure (NASDAQ:AY)
Atlantica Sustainable Infrastructure (NASDAQ:AY) is another way to invest in renewable energy infrastructure. However, Atlantica is specifically focused on the areas of solar and wind. And these are the two sectors that have been growing (and becoming more cost-efficient) even as a Republican has occupied the White House. This is key to Atlantica’s business model because it benefits from solar and wind cost efficiency.
Atlantica benefits from the steady cash flow from its investment in utility-scale wind and solar energy power plants. This lets it fund new projects while allowing the company to reward shareholders with a stable and growing dividend. The current yield is 5.76%.
Wind and solar are growing in popularity. And that means that Atlantica has a business model that doesn’t depend on a specific election result.
In the company’s most recent earnings report, the company reported having almost $500 million available for growth and several hundred million dollars available to the company through its revolving credit facility.
About Atlantica Sustainable Infrastructure
Atlantica Sustainable Infrastructure plc owns, manages, and invests in renewable energy, storage, natural gas and heat, electric transmission lines, and water assets in North America, South America, Europe, the Middle East, and Africa. The company was formerly known as Atlantica Yield plc and changed its name to Atlantica Sustainable Infrastructure plc in May 2020.
Read More - Current Price
- $22.13
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $22.20 (0.3% Upside)
Investing is about knowing where to put your money to capture the trends that are likely to influence investing for the next 10 or 20 years. And no bigger sector will dominate the next 10 years than renewable energy.
According to the U.S. Energy Information Administration, 2019 marked the first year since 1885 (that’s 1885, not 1985) that domestic annual energy consumption from renewable energy sources surpassed coal consumption.
But wait? Don’t we hear about how this is an election about coal versus renewables? We are, but that’s a false dichotomy. The reality is that the renewable energy movement is growing because technology is becoming cost-efficient. And this is a trend that will continue regardless of the election result.
At this time, the most widely used applications are in the electric power sector, primarily from wind and hydroelectric power. However, solar is coming on strong, and there is evidence that hydrogen fuel cells may be getting ready to be a significant player.
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