With climate change becoming a universal issue, sustainable energy is not just experiencing a rise in popularity but an increasing demand, and in this article we’re going to look at the sustainable energy companies worth investing in. Through exciting movements like RE100, an initiative where influential businesses commit to renewable electricity, more and more companies are making the pledge to switch to renewable energy – to name a few, Bank of America, Coca Cola Enterprises, Google and Goldman Sachs.
With this in mind, the time is ripe to invest in sustainable energy companies – with many established online investment companies such as CMC Markets making it far easier to do so. With currently 191 signatories to the Paris (Climate Change) Agreement and 17 goals of the 2030 Agenda for Sustainable Development, investors will soon be looking to clean energy companies to invest – get ahead of the crowd and take note of our below top seven.
1) NextEra Energy, Inc (NYSE:NEE)
This leading supplier of America’s renewable energy in solar and wind power is preparing up to 5.4GW of new solar and wind projects – this is, on top of the power that it already supplies to 9 million Americans across Florida alone. As well as this, NextEra is setting up a NextEra Energy Partners, a yieldco which allows the utility to tap equity and debt markets to recover the construction costs.
2) First Solar, Inc. (NASDAQ:FSLR)
Seen as a stalwart, First Solar became a public company in 2006. It stands 86% higher than in IPO price, a feat few of its peers have been able to achieve. The company focuses on two main areas: the manufacturing and sale of solar units, and providing turnkey solutions for solar project management projects.
3) Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI)
A truly international company with offices across the United States, Canada and Chile, Pattern energy Group is a forerunner in wind power-generation.
With a quarterly dividend of US$0.39 per share, or annually at US$1.56 per share, Pattern Energy Group gives its stock a handsome return of about 6.9% at today’s levels. This company has consistently raised its dividend for nine consecutive quarters, and in addition had six hikes since 2015, including its 2.4% and with 2016 marking the third year running where it will raise its annual dividend payment.
4) Brookfield Renewable Energy Partners LP (TSX:BEP.UN)(NYSE:BEP)
With over 250 hydroelectric and wind power-generation plants in seven countries in North America, South America, and Europe, Brookfield Renewable Energy Partners is a trailblazer in the field of clean energy generation.
Their stock pays a quarterly dividend of US$0.445 per share, or annually at US$1.78 per share. They had a 7.2% dividend hike in February and should be able to also raise its annual dividend payment. Brooklyn Renewable Energy has a distribution growth target of 5-9% annually.
5) TransAlta Renewables Inc. (TSX:RNW)
This green energy giant has facilities in the United States, Australia, and Canada and fact is the biggest producer of wind power in Canada. Altogether, TransAlta has 39 power generation facilities which includes 13 hydroelectric, 18 wind, and eight gas-fired facilities located across these countries.
It yield an annual dividend of $0.88 per share which equates to a monthly dividend of $0.07333 per share. It should be able to raise its annual dividend payment this year which would make it the third consecutive year it has been able to do so.
6) Green Plains Partners, LP (NYSE:GPP)
New kid on the block Green Plain Partners owns ethanol production and transportation infrastructure. Ethanol has been the subject of much controversy with regards to its sustainability, however ethanol production is much more efficient than it was ten years ago and arguably still remains a greener than most energy sources due to its reduction in greenhouse gases and lesser use of oil in transportation.
With an annual dividend of $1.60 per share, Green Plains Partners is really one to consider.
7) Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI)
Although they are not strictly a sustainable energy company, Hannon Armstrong adds unique twist in the competitive arena of Yieldcos. What sets them apart is the advantage that they finance energy efficiency and renewable energy markets. With a P/B ratio of 2.20 (in comparison to the industry average of 1.60) Hannon Armstrong is definitely a stock to take note of. With a projected growth of 30.61% for this year, do not overlook this company in your investment portfolio.
These sustainable energy companies are the rising stars in reducing the carbon footprint. They are dynamic, growing and young enough to be able to take risks, steer their course and amend their direction if it necessary – great news for both your investment portfolio and the planet!