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Atlantica Yield: Renewable Energy YieldCo Offers 7% Yield For Clean Income

Published Thu, 16 Apr 2020 08:35:00 -0400 on Seeking Alpha

Life before and after the virus will be very different. Investors need to think about adjusting accordingly.
We expect renewable energy to be among the big winners.
Atlantica Yield is a great way to bet on our future.
Co-produced with Treading Softly
Whenever humanity survives a worldwide event, like a world war or a pandemic, it often causes us to re-evaluate what we deem important. Debates will spawn over how we responded, how we could've been better prepared and how we should move forward. We see the healthcare sector for example benefiting from an added push for preparedness.
Part of that discussion will be how we generate power for our homes and industries. We see green energy coming to the forefront as air quality temporarily improves from stay-at-home requirements. Other industries are struggling due to lack of demand, and individuals are benefiting from government stimulus, however power demand keeps green energy firms running.
In our article today, we will highlight a green energy company that's set to gain from trends "after the virus." The company we will highlight in this report is Atlantica Yield (AY), a green utility company structured as a Yieldco.
Green energy has seen strong growth over the past few years as the cost of the technology has decreased while its ability to generate power increased. This has caused multiple developers and marketers of renewable energy to spin off those assets into a separate corporate structure known as a Yieldco.
Understanding YieldCos
Source: NREL
The closest comparison to the Yieldco structure that investors will most likely have familiarity with is Master Limited Partnerships. Like MLPs, Yieldcos have a sponsor who develops and initially operates assets tied to long-term contracts.
These assets are often gathered together and a Yieldco is spun off of the parent. Over time, the parent continues to drop down assets to the Yieldco who operates them. The parent wins by having their... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
PG&E 10.10   0.0 -16.73 0.00 19.85
BLACKROCK 434.75   16.5 26.34 13.20 3.08
NEXTERA ENERGY 220.74   31.7 6.96 5.00 2.29

PG&E - PCG
PG&E - PCG  


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Yield Curve, Trade Talks, GDP (Wall Street Breakfast Podcast)
How Much Exposure Do YieldCos Have To The PG&E Bankruptcy?
19 Dividend Aristocrats Down 20% Since Market Peak
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PPL Corporation: Another Utility With A 5+% Yield But Be Cautious

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