Published Fri, 17 Feb 2017 08:15:00 -0500 on Seeking Alpha
This research report was jointly produced with High Dividend Opportunities co-author Philip Mause.
Pattern Energy Group (Nasdaq: PEGI) is a leading wind energy producer which has been growing both energy production and revenue steadily. It closed recently at $19.44 and pays out $1.632 for a yield of 8.3%. The dividends have been increasing quarterly for the past 11 quarters and future increases are likely. PEGI is a very attractive investment at the current price and provides the investor with an opportunity to obtain a generous yield while diversifying his or her energy exposure.
The Business - The business model of PEGI is very well described on the company's website:
Our name, "Pattern Energy", embodies the approach we take. We seek and find patterns in all aspects of our business: wind currents, electrical grids, risk mitigation, site locations and financial models. These patterns help us identify opportunities, build tools, select technologies, and create solutions that yield successful, high-performance facilities.
By re-examining established practices, we discover new ways to approach them. We discern patterns through a systematic and scientific approach, but we count on our practical know-how and industry experience to convert them into facilities that perform. When we find profitable patterns, we repeat them. This cycle of discovery, deduction and development is a pattern we'll keep repeating.
PEGI has managed to structure its... Read more