This High-Yielding Renewable Energy Stock Has Lots More Dividend Growth Ahead
Atlantica Yield (NASDAQ: AY) has increased its dividend several times over the past few years. The renewable energy producer recently announced its latest increase, a modest 2.4% raise, which will push its dividend yield above 5.9%. While that's certainly an attractive payout, there's a lot more upside ahead for the company's dividend, making it an intriguing stock for those seeking a steadily rising income stream.
Atlantica Yield recently reported its first-half results. While earnings declined by 7.4% year over year, cash flow improved by 2.9%. That's because lower interest expenses more than offset foreign exchange rate fluctuations and weaker results at its solar energy facilities because of less sunshine. Overall, the company generated $97.3 million in cash, which more than covered its $84.3 million in dividend outlays during the first half of the year.
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