(Image via the World Economic Forum.)
Energy stocks can pay healthy dividends and renewable energy has been capturing great attention as of late.
Valued at $1.4 billion (USD) in 2017, the global renewable energy market is forecast to reach $2.1 billion by 2025, according to market data compiled by analysts with Kenneth Research.
For investors who want to get in on a share of this growth, a key development to keep an eye on would be emerging companies making innovations in this space, many of which are covered by Stockhouse regularly.
Impressive companies with good stories to get started:
NextEra Energy Inc. (NYSE: NEE) - The renewable energy segment that is under this company generates and sells power throughout the United States and Canada. Like a volcano ready to blow, NEE stock has been climbing steadily for years. It’s price might seem rich now, but looking at its track record, one has to wonder how high can it go?
NEE has some solid financials on the table and growth prospects lined up as well. Investors could collect this stock as a very long-term hold, with the move to “go green” becoming more in vogue.
First Solar Inc. (NASDAQ: FSLR) - A global provider of comprehensive photovoltaic (PV) solar systems, which use its “advanced module and system technology”. FSLR’s integrated power plant solutions deliver an alternative to fossil-fuel electricity generation that is economically attractive. Via its partnerships with EDP Renewables and ConnectGen, it has completed the acquisition of three US projects. A similar operation is residential solar provider Vivint Solar (NYSE: VSLR) .
Eversource Energy (NYSE: SE) - This diversified holding company has subsidiaries that provide regulated electric, gas and water distribution services. With the addition of NStar's Massachusetts utilities in 2012 and Aquarion in 2017, the company now serves four million customers. ES is in the process of switching its operations to 100% renewable energy and recently partnered to build an offshore wind farmin the US.
ETFs in the renewable space to watch:
Pattern Energy Group Inc. (TSX: PEGI) - Has a portfolio of 28 renewable energy projects with an operating capacity of 4.4 GW in the United States, Canada and Japan. In March 2020, the company will meet with shareholders to discuss a proposed mergerwith the Canada Pension Plan Investment Board.
Brookfield Renewable Partners LP (NYSE: BEP) - Operates one of the world’s largest publicly traded, pure-play renewable power platforms. This portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia.
Though not technically a renewable energy ETF, the BMO Equal Weight Utilities Index ETF (TSX: ZUT) has a lot of renewable companies included, with a solid lineup of natural gas companies as well, which can be a nice offering for investors. Many of its companies hold assets across the globe.
Are there any emerging companies advancing renewable energy endeavours that you are very passionate about? Let us know in the comments below.
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