Green Stocks: A Curious Pair

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Now, listen closely, because we’re going to talk about two companies dabbling in the rather important business of green energy. It’s all frightfully modern, you see. One’s called Enbridge, and the other Dominion. Both are trying to look sensible about the future, though they’re going about it in distinctly different ways. Enbridge is a bit like an old pirate, slowly swapping his treasure chest of oil for wind turbines. Dominion, on the other hand, is a proper, starched-collar sort of company, attempting a complete makeover. A rather ambitious undertaking, wouldn’t you say?

Dominion: A Land of Growing Power

Dominion supplies electricity to a good many homes and businesses in Virginia, North Carolina, and South Carolina. And goodness, are things booming in northern Virginia and North Carolina! It seems everyone is building these enormous “data centers” – great, humming boxes filled with blinking lights and secrets. They gobble up electricity like greedy little monsters. Dominion is happily supplying the juice, and they’ve been rather clever about it, building solar farms, wind contraptions, and even harnessing the power of rushing water. They’ve got enough renewable power to light up a truly astonishing number of homes – over 625,000, in fact. They also possess a rather large nuclear plant, Millstone, which produces carbon-free electricity. It’s a bit like a giant, silent teapot, brewing power for the whole of New England.

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Now, over the past year, Dominion’s stock has climbed a respectable amount – more than 10%. It’s a predictably profitable sort of company, doling out dividends for an astonishing 392 quarters without a single hiccup. Though they haven’t been increasing those payouts lately, it still yields a rather tempting 4.3%. The only slightly troubling thing is that they seem to be handing out a rather large portion of their earnings as dividends – around 87%. A bit like a generous but slightly reckless uncle. Still, they’ve managed to increase revenues by over 25% in the last decade. Not bad, not bad at all.

In the last quarter, their earnings per share crept up 6% – a tidy little increase. And the bosses are predicting growth of 5% to 7% each year until 2029. They’re spending a whopping $50 billion over the next five years, mostly on these zero-carbon power plants and modernizing the grid. A rather grand scheme, wouldn’t you agree?

Enbridge: The Pirate’s Transformation

Enbridge, now, is a different kettle of fish altogether. They’re still very much involved in the rather messy business of oil and gas – owning the longest network of pipelines in the world. It provides about 60% of their income, which is rather a lot. They charge companies to move their oil and gas around, and it’s a steady, reliable business. They also run the largest natural gas utility in North America. It’s not exactly “green,” but it’s not entirely dreadful either.

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But, and this is where it gets interesting, they’re also dabbling in renewable energy – wind farms in Europe, solar installations here and there. It’s their smallest business, but it’s growing at a rather impressive rate. In the last quarter, earnings before all the usual deductions rose 16%. They have several large renewable energy projects underway, including a rather enormous solar farm in Texas – the Sequoia Solar project. And they’ve even roped in Toyota and AT&T as long-term customers. Clever, very clever indeed.

Over the first nine months of the year, their earnings before interest and taxes rose 9%. And their distributable cash flow per share grew by 2%. Not spectacular, but perfectly respectable.

Enbridge’s stock has climbed about 14% over the past year, and their dividend yield is a tempting 5.4%. A particularly attractive prospect for those who like a steady income. The payout ratio is a bit of a worry – over 100% at the moment. But if interest rates fall, as many experts predict, their debt expenses will fall too, freeing up more cash for those dividends. And their new gas acquisitions and assets will also help. Enbridge’s bosses are dedicated to the dividend, having raised it for 30 consecutive years, including a 3% bump this year.

Which One to Choose?

If you’re looking for a company that’s wholeheartedly embracing green energy, Dominion might be the one for you. They’re actively retiring those old, polluting power plants and replacing them with a massive portfolio of renewable energy resources. They’re well-positioned to benefit from the growing demand for clean electricity, especially from those data centers.

But Enbridge might be the better choice right now. It’s a high-yield energy play that’s using the cash from its old oil and gas business to fund the growth of a diverse renewables, hydrogen, and carbon capture business. This makes Enbridge a bet on the infrastructure of the green energy transition, and thanks to its high-yielding and dependable dividend, shareholders can afford to be patient as they wait for that bet to fully pay off.

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2026-02-07 16:53