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10 Largest Renewable Energy Stocks To Add To Your Portfolio in 2021

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Green energy investment has been a hot topic for over 10 years now. With the potential for global stimulus in the trillions of dollars, the growth in clean energy stocks is something many investors are eagerly anticipating. 

But many people have been reluctant to add to their personal portfolio of the usual bank and finance stocks because of concerns that they could become investors in companies that are too speculative and unstable.

This is why I’ve decided to list out the 10 biggest green energy and technologies stocks to show you the investment potential that large and established global companies have.

Top 10 Renewable Energy Stocks

While not all of these stocks are American companies, they all trade on a U.S. stock exchange, readily available for U.S. investors.

I have listed them in order of total value as of Q1 2021, along with the current key financial information of each company.

1. Tesla Inc. (TSLA:US)

Market Cap

$604 billion

Revenue

$31.536 billion

Net Profit

$721 million

Assets

$52.148 billion

Liabilities

$28.418 billion

Employees

70,757

Dividend Yield

n/a

*Numbers based on latest available 2021 financial data

It’s a common misconception that Tesla Inc is just an electric vehicle company. While it does operate in the car industry, it has become popular with growth stock investors because it’s one of the few large companies involved in electricity storage through batteries.

Elon Musk has even been in the news stating that he’s developing solar panels in the shape of roof tiles.

So there are a lot more projects that this company plans to expand into. 

Tesla unveiled plans to develop a “tabless” battery that could improve an electric car’s range and power. The company will produce its new batteries in-house, which Tesla CEO Elon Musk predicts will help dramatically reduce costs and allow the company to eventually sell electric vehicles for the same price as gasoline-powered ones.


Andrew Hawkins, Writer at The Verge

2. NextEra Energy (NEE:US)

Market Cap

$147.74 billion

Revenue

$17.997 billion

Net Profit

$2.919 billion

Assets

$127.684 billion

Liabilities

$82.755 billion

Employees

14,800

Dividend Yield

2.11%

*Numbers based on latest available 2021 financial data

As the world’s biggest clean energy producer with a variety of clean power plants, NextEra is still one of the fastest-growing suppliers to U.S. utility providers.

NextEra is also among the biggest companies when it comes to planned investments to increase their electricity-generating services. Over the next two years, the company plans to spend over $50 billion to expand its solar and wind power output.

This is on top of the already large operations that cover 48 states since last year. 

3. Iberdrola SA (IBDRY:US)

Market Cap

$83 billion

Revenue

€33.145 billion

Net Profit

€3.611 billion

Assets

€122.518 billion

Liabilities

€75.3 billion

Employees

37,127

Dividend Yield

3.12%

*Numbers based on latest available 2021 financial data

This Spanish multinational energy industry giant has the world’s largest number of wind power projects. The company’s subsidiaries include Avangrid in the USA, which has given them significant exposure to America.

Of all the renewable energy stocks, this is one with the largest power output from green sources, which has grown to over 32,000 MW. 

4. Ørsted (DNNGY:US)

Market Cap

$65.43 billion

Revenue

DKK50.151 billion

Net Profit

DKK15.598 billion

Assets

DKK196.719 billion

Liabilities

DKK99.39 billion

Employees

6,429

Dividend Yield

1.2%

*Numbers based on latest available 2021 financial data

Not only is this one of the biggest renewable energy stocks, but this offshore wind power specialist is among one of the most consistent dividend income providers.

Many scientists believe that offshore wind production is going to be the best option to ensure that the growth of electric vehicle usage doesn’t end up coming at the price of utilities relying more on fossil fuels. 

5. Vestas Wind Systems (VWDRY:US)

Market Cap

$35.8 billion

Revenue

€14.819 billion

Net Profit

€765 million

Assets

€18.16 billion

Liabilities

€13.457 billion

Employees

26,121

Dividend Yield

0.78%

*Numbers based on latest available 2021 financial data

Most of the clean energy stocks listed above involve the production and storage of clean energy. But Vestas is a great company to gain direct exposure to wind energy technology.

The services offered directly to utility companies and electricity producers include the installation and maintenance of large-scale wind farms. 

6. Siemens Gamesa Renewable Energy (GCTAY:US)

Market Cap

$22.58 billion

Revenue

€9.483 billion

Net Profit

-€918 million

Assets

€16.331 billion

Liabilities

€11.396 billion

Employees

27,000

Dividend Yield

0.18%

*Numbers based on latest available 2021 financial data

Another way to gain direct exposure to the technology behind renewable electricity this year comes with investing in Siemens Gamesa.

This is a European growth stock available on US markets, and the organization heavily invests in research and development to lead the way in creating sustainable technology solutions for the future. 

Investing in green and clean stocks comes with a moral benefit, knowing that you’re helping new services and technologies grow to a size where they achieve huge economies of scale.

7. Brookfield Renewable Partners L.P. (BEP:US)

Market Cap

$16.43 billion

Revenue

$3.81 billion

Net Profit

-$184 million

Assets

$49.722 billion

Liabilities

$27.955 billion

Employees

2,630

Dividend Yield

2.99%

*Numbers based on latest available 2021 financial data

Brookfield Partners is an American company with wind and solar power assets across the globe. While it has large arrays of strategic solar panels, it’s hydroelectric power that sets Brookfield Partners apart from other stocks.

With over 20,000 MW of installed capacity, the stocks also provide a great annual return through dividend payments.

8. First Solar, Inc (FSLR:US)

Market Cap

$8.56 billion

Revenue

$2.711 billion

Net Profit

$398 million

Assets

$7.108 billion

Liabilities

$1.588 billion

Employees

6,400

Dividend Yield

n/a

*Numbers based on latest available 2021 financial data

First Solar is a relatively young American company established in 2001. The specialist maker of solar panels is also practicing what it preaches.

With an ambitious goal of powering all office and manufacturing facilities with solar energy by 2028, it has become a leader in sustainability and innovation. 

9. Renewable Energy Group (REGI:US)

Market Cap

$2.87 billion

Revenue

$2.137 billion

Net Profit

$122 million

Assets

$1.461 billion

Liabilities

$287 billion

Employees

727

Dividend Yield

n/a

*Numbers based on latest available 2021 financial data

This American-based company is interesting because it recently made it onto the Fortune 1000 list.

It produces fuel at 13 biorefineries, and it’s helpful to note that this source of energy will play a critical role in a transition to electric vehicles, which will take longer for large construction, farming, and industrial machinery. 

10. Canadian Solar Inc (CSIQ:US)

Market Cap

$2.66 billion

Revenue

$3.476 billion

Net Profit

$146 million

Assets

$6.536 billion

Liabilities

$4.644 billion

Employees

13,478

Dividend Yield

n/a

*Numbers based on latest available 2021 financial data

The final organization is another one that operates in the solar power industry. According to company filings, Canadian Solar Inc supplies customers in over 150 countries, which may make it a prime asset with one of the best existing distribution channels for solar panels and other solar energy components. 

Why Invest in Renewable Energy Stocks?

Many people look at the past performance of renewable energy stocks and the media attention they have received, but they don’t fully understand why investing in this sector and services has gained so much attention.

Here are the 4 main reasons why I believe this sector should be part of investors' strategies this year.

1. Take Advantage of Growth Opportunities

The term growth stock is often used in finance to highlight a company with positive cash flow and higher expectations for future revenue compared to other companies in the sector.

Not only does investing in certain green technology and energy stocks in the U.S. stock exchange provide the opportunity for larger than average growth, but the entire wind utilities, solar power, and electricity storage business is outgrowing all other industries. [1]

And renewable energy industries don’t just provide an opportunity for growing your investment fund — they can supply you with income as well, so let’s look at that next.

2. Gain Access to Regular Income

Watching portfolios or a fund grow from year to year certainly helps you become content that you’re securing your future.

But note that investing your money should also provide you with an income every quarter in the form of dividends.

Fortunately, there are many utilities and high-tech companies around the world that currently offer a good dividend yield with a solid past record of increasing those payments.

That means you’ll be growing your investments every year and releasing some money that you may want to invest in other new opportunities around the world.

3. Balance Your Personal Portfolio

Next, investing in the green industry is one of the best ways to make sure you’re not overexposed to certain sectors. [2]

Diversity is the best way to protect yourself from sudden crashes in one area. But many people have spent the past years investing in bank, finance, and computer technology stocks while missing the largest industry development since the Internet boom of the 90s.

4. Ensure a Green Future With Clean Energy Stocks

Finally, investing in green and clean stocks comes with a moral benefit, knowing that you’re helping new services and technologies grow to a size where they achieve huge economies of scale.

The faster these companies can help the world switch to renewable sources of electricity, the more positive of an impact you will have on climate change.

FAQ

Is renewable energy a good investment?

Yes, renewable energy is a good investment for a personal portfolio. They provide both growth and income potential, and many analysts believe this sector is still in its infancy.

Can you invest in renewable energy?

Yes, you can invest in renewable energy stocks. This allows you to gain exposure to technology, production, and distribution, and it’s one of the best ways to diversify a share account.

Who is the biggest renewable energy company?

Tesla Inc is the biggest renewable energy company because of its heavy exposure to battery technology, according to some analysts. From an energy production perspective, NextEra has become the largest clean power producer since last year.

Is renewable energy profitable?

Yes, renewable energy stocks are profitable from a growth and income perspective. There are established organizations with a long track record of high dividend yields, as well as new companies that may come with huge growth potential.

Final Thoughts

If your personal portfolio doesn’t have at least some exposure to clean energy, then at the very least, you could have a need to ensure you’re properly diversified and balanced.

All of the above stocks provide great exposure with established organizations and a long track record of success.

I highly recommend that you use this list as the basis for your own analysis and research into other articles and publications before making any investments.

Disclaimer: The information provided on this article is based on the writer's own experience and personal opinion and does not constitute professional financial investment advice. GreenCitizen recommends that you conduct your own independent research or seek the services of a qualified investment professional before making any financial decisions.


References

  1. https://www.powermag.com/a-fine-couple-they-are-wind-and-solar-power/
  2. https://www.investopedia.com/articles/stocks/07/green-industries.asp


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