Terna Energy: A stock with great long-term dividend potential
By investing in Terna Energy stock, investors can enjoy long-term dividend yield and participate in sustainable energy projects
The Terna Energy stock could be a great opportunity for investors looking for stocks offering good long-term dividend potential.
Of course, when it comes to investing in stocks and shares, any existing or prospective investor should always bear in mind that the only certainty is that nothing is certain.
Therefore, in this post, I will present my own view and estimate about the Terna Energy stock, which, I believe, has a great potential to prove to be a good long-term investment.
This post is purely informational, and you should by no means rely solely on this estimate, but you are strongly recommended to seek other professional advice, and double-check any relevant information that you have available, before making the decision to invest in any of type of stock.
You are solely responsible for using this information and making the decision to invest.
Terna Energy analysis
Terna Energy is a company that is committed to clean energy generation, and as it is stated on its website, it is the top investor in RES projects in Greece.
It has implemented an extensive growth program in the energy sector, being clearly focused on sustainability.
Terna Energy is listed in the Athens Stock Exchange, and last year, its dividend yield was 2.73%. Since its listing in 2007, it has offered some type of return every single year, in the form of either a dividend or capital return. Therefore, over time, it has proved to be good choice for investors interested in growing their investment and/or receiving some income through dividends or capital returns.
Unlike financial and other companies that are listed in the Athens Stock Exchange, which have struggled to survive from events such as the global financial crisis, the coronavirus pandemic, and their consequences, the company has kept distributing dividends even during those hard economic times.
Although the Greek RES market has lost its strong initial momentum, which was mostly fueled by corporate investors, as well as house owners who invested in solar and other renewable energy applications that were installed on their house roofs, Terna Energy, by establishing a partnership with the Heron Group of energy companies, has lately introduced the innovative Heron EN.A. program to overcome the problem of investment stagnation in the sector.
The company currently offers this investment program that appeals to house owners and tenants who can’t afford, or are unable, for various reasons, to invest in the exploitation of small-scale solar power generation facilities installed on their properties.
Thus, those individuals are given the alternative option of investing in existing and new RES projects developed by Terna Energy across Greece, even if they lack the required space in their properties. In return, and depending on the level of their investment, they will get a discount on their home energy bill, which can even become zero for a period spanning up to 20-25 years, which is the standard life span of a standard solar panel.
In this way, Terna Energy has found an innovative way to finance its further growth by channeling private investment into RES projects, offering, at the same time, significant financial incentives and benefits to house owners and tenants, who also have the opportunity to actively participate in green energy projects.
As a result, Terna Energy is expected to maintain and even increase its growth and financial performance, making its stock a good investment choice.
In addition to the fact that its price has showed constant growth over time, the company has paid dividends or capital returns every single years since its listing, and these are two factors not to be overlooked by investors.
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