This sustainable infrastructure company could generate steady dividend growth over the coming years. The company did experience some foreign exchange headwinds and lower solar energy resources in some of the regions where it operates. However, it offset those negatives thanks in part to higher availability levels at its transmission lines and water assets. Furthermore, it's worth noting that it didn't experience any material impact from the COVID-19 outbreak during the quarter as its infrastructure assets are essential and backed by long-term, fixed-rate contracts that insulate it from near-term pricing and volume fluctuations.
Atlantica Yield (NASDAQ:AY) is all about sustainability. The company focuses on operating a portfolio of sustainable infrastructure assets like renewable energy projects and water desalinization plants that generate durable cash flows backed by long-term contracts. That provides it with the funds to pay an attractive dividend, which currently yields 6.8%. While higher-yielding payouts like that often come with more risk, Atlantica aims to sustain its payout by keeping its leverage low so that it can continue expanding its portfolio. Those durable characteristics were on full display during the first quarter.
Source: Motley Fool
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