The Globe and Mail reports in its Saturday edition that shares of Northland Power plunged in mid-November after the renewable power producer slashed its dividend by 40 per cent, catching many investors by surprise. The Globe's John Heinzl writes that the company plans to redirect the cash it saves toward major offshore wind developments, including the Baltic Power project in Poland and the Hai Long project in Taiwan. With the stock down 30 per cent since the dividend cut, the shares now yield 4.2 per cent. Analysts say reducing the dividend was the right call, given the company's high payout ratio and large capital needs. "We see good value in NPI and believe the share price reflects a deep discount to the value of the existing assets and projects under construction," said RBC analyst Nelson Ng in a Nov. 26 note. Mr. Ng pointed out that the company's assets are highly contracted or regulated, supporting predictable cash flows. He also noted that, according to management, the company is not under pressure from credit-rating agencies. Of the nine analysts surveyed by Zacks, there are five buy ratings -- including Mr. Ng's -- and four holds, with an average price target of $22.55. Northland closed Friday at $17.24.