RE:RE:A gem of a stock for baby boomers is RNWNo need to worry about dangers in renewing PPA since they are long term for the next 20 years or so. Payout ratio is a bit high due to some legal problems in Australia a couple of years ago. This issue won’t be in court until late next year. This problem also prevented RNW from increasing their dividend as they have in the past.
You need to understand that RNW is not an independent company. TA.TO owns majority of the shares (over 60%). RNW has no employees. TA runs all the locations and charges RNW a fee. TA calls the shots. Because TA has been in such a mess with too much debt and too much coal, RNW has kinda drifted for 2 years. Small drop downs and a couple of small acquisitions did happen but analysts were not impressed. Analysts have complained about this for about two years now.
TA held an investor day this week and laid out their future investment plan. Looks like they will use RNW by dropping down assets and allowing them to acquire assets to fund TA coal conversions. This will likely support a divi increase in the future and moderately increase the share price.