Capital Power Corp (TSX:CPX) offers investors a great yield and a lot of stability. In each of the past four years revenues have been north of $1.2 billion while the company has also posted healthy profits along the way.
Although Capital Power may be struggling to grow its top line, its operations in Canada and the U.S. give the company flexibility and many options for growth. In addition, Capital Power has been working on developing wind and solar power sites in the U.S., which will open up more opportunities down the road as consumers look for more environmentally friendly options for their energy.
Despite still growing, Capital Power has increased its dividend payments in each of the past four years. From quarterly payments of $0.315 in 2014, payouts have grown to $0.4175, for an increase of 33%.
While investors may normally consider a stock like Fortis Inc (TSX:FTS)(NYSE:FTS) for their dividend, it pays less than 4% and the company’s growth may be tapped out, unless it seeks out further acquisitions. Capital Power, however, is still in its early stages and has many more avenues where it can grow.
In the past year, the stock has been down more than 5%, but Capital Power is a long-term play. With a market cap of just $2.5 billion, it has a long way to go before coming close to Fortis, which has a market cap of over $18 billion.
Capital Power offers investors growth, value, and dividends, and that makes it a rare find and a great addition to any portfolio.