Barron’s has an interesting article by Jack Hough explaining how advances in battery capacity are changing the prospects for the utility industry (spoiler alert–not surprisingly, advances in power storage capacity will further encourage a shift away from more expensive natural gas, coal and nuclear generated electricity toward toward greater reliance upon less expensive renewable sources–wind and sunlight.)
The article is behind a firewall, so I’m not sure if you can read it in full if you’re not a subscriber. But the article says American Electric Power and Xcel Energy (dividend yields of 3.9% and 3.6% respectively) are among the utilities with substantial capacity to add wind farm capacity. AEE is currently building an 800 turbine wind farm in Oklahoma.
Xcel Energy, based in my hometown of Minneapolis, has a long track record of building wind power farms. Already, renewables account for 23% of the company’s power generation. The company plans to increase that to 47% by 2027, according to Barron’s. That is a nice feel good benefit of sustainability to go along with the company’s attractive dividend yield.
Dividend Pick of the Week 