1 Dividend Stock Down 17% That’s an Amazing Lifetime Buy

What makes a dividend stock an amazing lifetime buy is not just a high yield. It’s a business that keeps generating cash, owns assets that stay useful for decades, and has enough resilience to handle rough patches without losing its long-term value. When that kind of stock falls because investors are worried about near-term noise, the setup can get very attractive. You’re not buying a broken story. You’re buying a solid business at a better price.

NPI

Northland Power (TSX:NPI) fits that mould better than many investors might think. It’s a Canadian independent power producer with projects across offshore wind, onshore renewables, natural gas, and battery storage. In other words, it’s tied to electricity demand, grid investment, and the long global shift toward cleaner power. That gives it a pretty sturdy long-term theme, even if the stock has not always behaved like one.

Over the last year, NPI stock has looked more like a company in transition than one standing still. The biggest headline was a dividend reset that took effect in 2025, along with changes to its DRIP program. That was not fun for income investors in the moment, but it also showed management was willing to make a hard decision to better align cash returns with future growth and capital needs. Sometimes a lifetime buy starts with an uncomfortable but necessary cleanup.

There has also been real operating progress beneath the headlines. NPI stock’s latest results highlighted stronger offshore wind production, contributions from newer projects, and a full 2026 outlook that points to continued execution. The market may still be cautious, but the business itself is not exactly sitting around waiting for a miracle. It is still building, producing, and positioning for the next stretch of growth.

Into earnings

The earnings picture was mixed on the surface but better in the details. For 2025, Northland reported revenue from energy sales of $2.43 billion, up from $2.35 billion in 2024. In the fourth quarter alone, revenue rose to $722.8 million from $571.9 million. Net income was noisy, with a full-year net loss of $108.4 million after a profit in 2024, but the fourth quarter swung to a strong profit of $289.8 million from $150.5 million a year earlier. That is a reminder that project timing, financing, and non-cash items can make annual results look messier than the operating story really is.

The cash-flow side looked much healthier. On the earnings call, NPI management said fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 25% year over year to $390 million, while free cash flow per share jumped 48% to $0.46. That matters a lot more for dividend investors than a single headline profit figure. It suggests the underlying engine is still working, even if accounting results bounce around.

Valuation is part of what makes this interesting now. NPI stock recently traded around $21.50, down about 17% from its 52-week high at writing. Based on the current annualized dividend of $0.72 per share, the forward yield is about 3.4% as well. That is not a sky-high payout anymore, but that may actually be the point. The dividend now looks more sustainable, while the lower share price gives investors a more reasonable entry into a long-duration power platform. The obvious risk is that renewable and infrastructure-heavy businesses can be capital intensive and sentiment can stay moody for a while. Still, if you are buying for years, not months, that lower price starts to look much more useful. Even now, here’s what that dividend could earn from $7,000 alone.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTNPI$21.45326$0.72$234.72Monthly$6,992.70

Bottom line

Northland Power is not a perfect stock, and that is exactly why the opportunity is still there. It has already taken some pain, reset expectations, and kept moving forward with a portfolio of assets that should matter for a very long time. For investors who want one dividend stock down from its highs that could still be an amazing lifetime buy, NPI stock makes a very solid case.

The post 1 Dividend Stock Down 17% That’s an Amazing Lifetime Buy appeared first on The Motley Fool Canada.

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More reading

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• Maximum TFSA Impact: 2 TSX Stocks to Help Multiply Your Wealth
• Canadian Renewable Energy Stocks: Hype or Historic Opportunity?
• 2 Canadian Stocks That Could Win From More Power Demand

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.