Invest in the Future With This Renewable Energy Stock That Yields Over 5%

Pattern Energy Group Inc (TSX:PEGI)(NASDAQ:PEGI) is an independent power company that invests in renewable energy with a portfolio of 20 facilities spanning Canada, the U.S. and Chile that total a capacity of over 2,600 megawatts. Pattern currently pays its shareholders a very good dividend of 5.45%

The dividend is paid in USD and so you could see considerable volatility from one quarterly payment to the next, depending on the movement in the Canadian and U.S. currencies. In three years, Pattern has increased its dividend by 28%, for a compounded annual growth rate of 8.6%. This means it would take a little more than eight years for the dividend payment to double, assuming the rate of dividend hikes were to remain consistent.

In addition, as there is more of a demand for renewable energy, stocks like Pattern could see sales take off. In just three years the company has seen its sales rise 75% and there is the potential for that growth to continue as countries try to minimize their dependence on oil and move to more sustainable energy sources. Although the movement to renewable energy may not happen overnight, the direction is unmistakable and investing in sustainable energy sources is a great long-term investment that could net you very strong returns over the years.

Year-to-date the stock has yielded returns of over 21% for investors, and although the share price is a bit expensive trading at 64 times its earnings, the growth prospects and great dividend could make it worth the premium.