Entry level alternative energy investors typically look below the $10 price mark to find promising stocks that could explode in growth. Sometimes stocks turn out to be winners, while at other times they languish in the bargain market. Terraform Power Inc. (NASDAQ: TERP) is one of the success stories. Despite it climbing beyond the $10 bargain range, it’s still a top stock for alternative investors.
Terraform is a solar and wind energy company that purchases and operates renewable assets. Strong revenue growth is a big part of the stock’s appeal. In 2015, company revenue jumped by 257%. In 2016 it was up 45%. It declined -6.24% in 2017, but management turned things around in 2018 to achieve 27% growth and total revenue of $806.74 million.
Cash Available for Distribution (CAFD) was reported at $44 million in Q1, compared to $23 million in the year ago period. The dividend of $0.20 makes for a yield of $5.2% at today’s stock price. This is significantly above market average. Management has committed to increasing the dividend in a range of 5% to 8% per year for the next three years.
The dividend offsets the fact that this stock is no longer under the $10 sweet spot. It’s a powerful earner that all alternative investors should consider this quarter.
- 1 Year Price Growth: 22%
- YTD Price Growth: 88%
- 3 Month Price Growth: 09%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.