Let's face it, Green Energy stocks are here to stay. And the right companies are likely to experience significant growth in the coming years as green energy continues to penetrate the consumer economy.
Whether you are a full blown Climate Change believer, or you are a skeptic – one thing all investors can agree on is that consumers and big businesses will continue to adopt green energy solutions in the near (and distant) future.
For investors, that means allocating some of your portfolio to green energy stocks is a no brainer. Here are a few of our favorite picks
Pick #1: Brookfield Renewable Partners (Ticker NYSE:BEP)
Brookfield Renewable Partners (NYSE:BEP) is one of the world's largest publicly traded renewable energy companies. Their alternative energy offerings un the gamut, including hydroelectric, wind, and solar energy generation facilities, as well as energy storage assets.
Brookfield uses a type of contract called fixed-rate power purchase agreements (PPAs) to lock in long term agreements with their customers. This means they have a stable cash flow, which allows them to pay an attractive dividend to investors and invest in expanding its portfolio.
Who doesn’t like dividends!
Many analysts also conclude Brookfield has a strong balance sheet, as indicated by their great investment-grade bond ratings in the renewable energy sector.
They also boast along with lots of liquidity — cash and available credit – which should help finance their inevitable growth in the coming years. In Brookfield's view, it has the financial capacity to invest $4 billion into expanding its renewable energy portfolio through 2024, with a focus on new solar energy developments. These investments should power enough robust cash flow growth to support 5% to 9% yearly increases in its dividend.
With sound fundamentals, analyst support, and consumer trends powering strong tailwinds, we believe Brookfield has the tools to deliver retail investors strong investment returns in the coming years.
Pick #2: First Solar (Ticker NASDAQ:FSLR)
Its no secret solar energy is one of the biggest sub-sectors of the green energy movement. And for good reason too – its not like the sun is going anywhere anytime soon!
Over the past decade the solar space has drawn a lot of skeptics, thanks to complex (and often fraudulent) business models.
But the reality is, there are some great companies doing some incredible things in the solar space.
Our pick is First Solar
First Solar builds thin-film solar panels. This means their panels are capable of producing electricity at a lower cost per watt than traditional silicon-based panels. This style of panel also perform better in extreme conditions (think hot/humid as well snow/cold/ice.) This makes them ideal pick for utility-scale applications.
Like our first pick, First Solar maintains a strong balance sheet according to many analysts. This includes a strong cash position, which provides it with interest income. This is unique in the solar space, as most companies carry high debt levels and pay too much in interest to make our list. We like companies that maintain strong cash positions, because it is strongly correlated with future financial stability and healthy growth.
With the demand for Solar expected to soar in coming years, we love First Solar for investors looking to diversify into the space.
Pick #3: Albemarle (Ticker NYSE:ALB)
Albemarle is in the battery business. As one of the world's top producers of lithium, Their products are used in everything from cellphones to electric vehicles. They have a strong combination of wholly-owned and joint venture assets that they use to mine and produce their lithium. This gives them a stable, but robust supply chain that many analysts believe is a recipe for strong, stable growth.
Its no secret that Electric Vehicle (EV) demand is expected to skyrocket in coming years. Big automakers like Ford, Chevy/GMC, Honda, and Toyota are all making big pushes into the space. And tech giants like Google, Amazon, and Tesla are also expected to aggressively invest into EV’s too.
They will all need one thing – batteries – and a lot of them.
Don’t be surprised to see EV sales break records year over year for the next decade. This is a bonafide trend.
And while investing in the electric company car companies themselves is a great idea for most investors. It’s also smart to diversify and take the ‘pick and shovel’ approach. That’s why we love the lithium/battery play.
Albemarle plans to nearly double its lithium production by the end of 2021. And many analysts don’t expect their growth to stop there.
Albemarle also produces something called bromine, which is used as a flame retardant in the same electronics that use lithium batteries (yes, batters can still explode, so safety measures are another sub-sector expected to see growth. In fact, Albemarle is the second-largest producer of bromine in the world.
Our advice: if you’re looking at alternative stocks, you should be looking at Lithium companies. And Albemarle is a great place to look.
4. The Blue Gas Giant That Could Take Down Tesla
People complain all the time about charging their Tesla’s. It takes five hours. And that’s just when it’s half dead.
That’s why many analysts are excited about a brand-new green technology that charges not in hours, but in less than five minutes.
It’s as quick as filling a tank of gas, except there’s no carbon emissions…
It lasts hundreds of miles longer…
And it NEVER dies — it can recharge forever.
The only thing it emits is pure, clean drinking water.
Best of all, it’s cheaper than batteries. And safer.
And it’s so remarkable that some experts who say: “this is the Tesla killer.”
Bloomberg projects it to “skyrocket 1,000 times over.” And best of all…
Now you can lock in its shares for a fraction of the massively expense Tesla stock.
Click here for the details on this incredible “Blue Gas”
