Investment Thesis
TerraForm Power (TERP) delivered a good quarter with top and bottom lines growth. The company has margin enhancement initiatives to grow its bottom line. It also has several wind repowering projects to grow its revenue and EBITDA. With a better balance sheet, the company is in a good position to grow its business through project developments and acquisitions. TerraForm currently pays an attractive 5.6%-yielding dividend and has set a goal to grow its dividend by 5%-8% annually in the next few years. We believe this is a company for income investors