Canadian investors should be eager to get in on the renewable energy space in 2022. Polaris Market
Research recently projected that the global renewable energy market was set to register a compound
annual growth rate (CAGR) of 8.5% from 2021 through to 2029. It expects the market to rise from $860
billion in 2021 to a whopping $1.68 trillion at the end of the forecast period.
TransAlta Renewables (TSX:RNW) is a Calgary-based company that develops, owns, and operates
renewable power generation facilities. Its shares have dropped 7% in 2022 as of mid-afternoon trading
on August 31. The stock is down 11% year over year.
The company released its second quarter fiscal 2022 results on August 5. Adjusted EBITDA fell 13% year-
over-year to $279 million. Meanwhile, cash flow from operations shot up $209 million from the prior
year to $129 million. TransAlta Renewables currently possesses a price-to-earnings ratio of 39, putting it
in favourable value territory compared to its industry peers. It offers a monthly dividend of $0.078 per
share. That represents a strong 5.4% yield.
Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is an Oakville-based company that owns and
operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility
assets. Its stock is down marginally in the year-to-date period.
In Q2 2022, Algonquin posted revenue growth of 18% to $624 million. The stock possesses a P/E ratio of
47, which still puts its shares in above-average value territory. Algonquin offers a quarterly dividend of
$0.181 per share, representing a strong 5.1% yield.
