2 Green Energy Stocks to Buy in February
Enbridge (NYSE: ENB) and Dominion Energy (NYSE: D) are both involved in green energy and working to position themselves to prosper in a lower-carbon future. Their approaches to the megatrend differ: Enbridge is a midstream infrastructure giant pivoting toward renewables, while Dominion is an electric utility engaging in a massive effort to decarbonize its power generation fleet.
Dominion delivers regulated electricity to more than 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina. It's seeing a surge in demand in northern Virginia and North Carolina because of an explosion in data center growth in those markets. The company's renewable energy projects, including solar, offshore wind, and hydroelectric, generate more than 2,500 megawatts -- enough to power 625,000 homes. It is also the largest producer of carbon-free electricity in New England, thanks to its Millstone nuclear power facility in Connecticut.
Over the past year, Dominion's stock has risen by more than 10%. As a regulated utility, it enjoys predictable cash flows, and it has distributed dividends for 392 consecutive quarters. Though it has not increased its payouts since 2022, it still has a relatively high yield of about 4.3% at the current share price. However, the company's lofty payout ratio of around 87% is a concern, even though it has increased its annual revenues by more than 25% over the past decade.
Source Fool.com
