Renewable energy stocks are trending as popular considerations for investors in 2021. The demand for cleaner energy sources is good for new startups as well as those that are more established companies in this arena of the tech sector. This is an industry that is fueled by large capital deployments which makes it prone to paying dividends that pay off for years and even decades. We looked for companies currently issuing stock shares that pay out the best dividends according to their short and long-term performance and activities history. Here is our pick for the five renewable energy stocks that pay solid dividends.
5. Brookfield Renewable
Brookfield Renewable is an entry-level company that is based in the United State. It's among the largest in the nation of its kind. The enterprise generates 19 gigawatts of renewable energy capacity and has generated more than 56,300 GW hours of energy. this is ample to power 5.3 million homes for 12 months. The company generates seventy percent of its power from its North American hydroelectric assets, with some in Colombia and Brazil. It also owns solar and wind generating systems. It's also on the move with plans to increase its capacity by an additional 6 GW of power. Thirty percent of the fund that comes from operations is distributed to shareholders in the form of dividends. Brookfield Renewable has plans to grow the current dividend at an annual rate between five to nine percent. The dividend is solid, supported through a predictable cash flow tied to PPAs. The income streams currently supporting the dividend payments are set to remain predictable for the next 14 years.
4. Invesco WilderHill Clean Energy ETF
This is a company that invests a minimum of 90 percent of its total asset base in securities made up of the underlying index. The index is made up of stock shares that are from US companies that are publicly traded and involved in advancing conservation and cleaner energy. The dividend yield is 0.1% with a 3 year annualized total return of 49 percent and 5 years annualized total return of 35.7 percent with quarterly dividend distribution and a net income ratio of 1.57 percent. The Invesco WilderHill Clean Energy ETF is from the Invesco fund family, established March 3, 2005, with 23398273 shares outstanding.
3. Hannon Armstrong
Hannon Armstrong is a stock that invests in a variety of different renewable energy sources. It's one of the most diverse companies of its kind in the world today. It invests wherever it finds an opportunity to invest in renewable energy and related industries. The diversity of the Hannon Armstrong investment strategy is its major strength. It invests in various clean energy projects as well as energy-efficiency companies, green real estate, energy storage as well as in the financial sector in housing loans that provide incentives for water and energy efficiency measures. It also invests in the land that is used for the operation of wind farms, rooftop solar projects, and much more. Hannon Armstrong pays dividends quarterly and is one of the most solid companies in the renewable energy industry. The company follows the best yields that are available and weighs the risk factors before investing. The current yield is between 7.1 and 8.4 percent which makes it a good proposition for dividend investors.
2. NextEra Energy
NextEra Energy is the largest owner of renewable energy assets in the world today. It maintains diverse investments in renewable energy assets with ownership of 5,830 megawatts, which is owned by NextEra Energy Partners. Investors need to know that the company has a weighted contract life that extends out for 13 years minimum if no other agreements are struck. NextEra Energy Partners has severe subsidiaries under its umbrella including NextEra Energy Resources, which is a project developer that builds solar and wind projects to generate clean energy. These subsidiaries serve as tributaries to the overall success of the company to garner its massive amount of energy stores that are sold. Another positive aspect of NextEra Energy is its long-term strategic plan that is set to increase the 31 GW to 45 GW by the close of the year 2024, which means substantial growth with multiple acquisitions in the pipeline. This is a company that has emerged as the leader in producing and storing renewable resources. The prospects for decent dividend payouts quarterly are good for at least the next thirteen years if you're looking for a moderate-range investment opportunity.
1. First Trust Global Wind Energy ETF
First Trust Global Wind Energy ETF is a fund that habitually invests a minimum of 90 percent of its net assets in common stocks within the renewable energy index, particularly in the area of wind energy. The securities of the public companies it invests in must be actively engaged in some aspect of the generation or disposition of wind energy. This is a non-diversified fund that retains a specific focus for investors who prefer to avoid diversification and invest in one particular type of renewable energy. The 3-year annualized total return is 19.9 percent with a 5-year annualized return of 15.7 percent with annual capital gain distribution and a net income ratio of 1.86 percent. Dividend distribution is made quarterly with a yield of 0.6 percent. First Trust Global Wind Energy ETF was launched on June 16, 2008, as a member of the First Trust fund family. 18350002 shares are outstanding. This is a United States-based fund that provides investors with an avenue for investing in multiple different companies through an ETF that invests in the wind energy associated businesses that show the highest yield for the least risk.
Written by Allen Lee
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