PODCAST: Analysts’ Top ESG Energy and Water Stocks


Analysts’ top ESG energy and water stocks and funds include the following. Middlesex Water Co., Invesco Water Resources ETF, American States Water Co., California Water Service Group, Xylem, Fidelity Select Environment and Alternative Energy Portfolio, Calvert Global Energy Solutions Fund Class A, American Electric Power, Dominion Energy, Hubbell, Consolidated Edison, Array Technologies, and TPI Composites

PODCAST: Analysts’ Top ESG Energy and Water Stocks

Transcript & Links, Episode 52, February 26, 2021

Hello, Ron Robins here. Welcome to podcast episode 52 published on February 26, titled “ Analysts’ Top ESG Energy and Water Stocks”— and presented by Investing for the Soul. investingforthesoul.com is your site for vital global ethical and sustainable investing news, commentary, information, and resources.

Remember that you can find a full transcript, links to content – including stock symbols, quotes, and bonus material – at this episode’s podcast page located at investingforthesoul.com/podcasts.

And Google any terms that are unfamiliar to you.

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Analysts’ Top Water Stocks

Increasingly, ethical and sustainable investors desire water stocks and funds in their portfolios. Here is a good article for those of you interested in this sector. It’s titled 3 Rising Water Stocks You Can Buy Today. It was on nasdaq.com and written by Robert Ross.

Here are some of Mr. Ross’s comments. He says that…

PricewaterhouseCoopers estimates that private spending on drinking water infrastructure will total $60 billion by 2027. Over the next 25 years, total spending on wastewater treatment alone will exceed $10 billion per year.

Steady and predictable investment like that is a key reason why American water stocks are some of the safest investments on the market. Many offer solid returns, too.

Take Middlesex Water Co. (MSEX) for example.

The company is one of the oldest water utilities in the US. But even though the business started in 1897, the stock has been pumping out solid returns for years.

If you prefer to get some broad exposure to the water market, consider buying the Invesco Water Resources ETF (PHO). It holds everything from utilities to infrastructure companies, and it pays a small 0.5% dividend yield.

Personally, I usually prefer buying individual stocks because they offer more upside. And you need look no further than Invesco Water Resources ETF’s holdings to find three stocks that offer waves of profits.

1) American States Water Co. (AWR)

Because of constant demand from California’s growing population, American States Water Co. is incredibly stable. And with a safe and reliable 1.7% dividend yield, it is my favorite income-based water play.

2) California Water Service Group (CWT)

This is another large California water utility. Considering California Water Service Group has never reduced its dividend payout in the 35 years it’s paid one, you can rest easy with this one in your portfolio.

3) Xylem (XYL)

While the company does not pay a dividend, it’s one of the premier water infrastructure companies. It has exposure to global demand for water infrastructure, generating over half of its sales outside the US.”

End of quotes.

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1. Analysts’ Top ESG Energy Stocks

Now I’m going to mention several articles related to energy but all with some unique perspectives.

The first article is titled 3 Clean Energy Funds to Buy as Climate Concerns Intensify. It was on nasdaq.com and written by Zacks Equity Research. Quote.

1) Fidelity Select Environment and Alternative Energy Portfolio (FSLEX)

The non-diversified fund invests majority of assets in common stocks of companies principally engaged in business activities related to alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies, or other environmental support services.

Fidelity Select Environment and Alternative Energy Portfolio has an annual expense ratio of 0.85% versus the category average of 1.04%. Additionally, the fund has significant investment in alternative energy companies like Tesla, Cummins and Linde.

Fidelity Select Environment and Alternative Energy Portfolio has three and five-year return of nearly 10% and 15%, respectively.

2) New Alternatives Fund Class A (NALFX)

Aims for long-term capital appreciation, with income being the secondary objective. The fund invests in common stocks of YieldCos, American Depository Receipts, real estate investment trusts and publicly-traded master limited partnerships. New Alternatives Fund Class A has three and five-year return of 29.2% and 22.7%, respectively.

New Alternatives Fund Class A has an annual expense ratio of 1.08% versus the category average of 1.28%. Additionally, the fund has significant investment in alternative energy companies like Innergex Renewable Energy, Vestas Wind Systems and Nextera Energy.

3) Calvert Global Energy Solutions Fund Class A (CGAEX)

Aims to track the performance of the Calvert Global Energy Research Index. The fund invests majority of assets in companies whose main business is sustainable energy solutions.

Calvert Global Energy Solutions Fund Class A has three and five-year return of 19.9% and 15.5%, respectively.

[It] has an annual expense ratio of 1.24%, which is below the category average of 1.29%. Additionally, Calvert Global Energy Solutions Fund Class A has significant investment in alternative energy companies like First Solar, Nextera Energy Partners and Terraform Power.” End quotes.

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2. Analysts’ Top ESG Energy Stocks

The second article features some names that might be unfamiliar to many ethical and sustainable investors. The article is titled 3 Cheap Renewable Energy Stocks to Buy Now and published on fool.com. Three authors each give their number one pick.

“1) Scott Levine likes American Electric Power (NYSE: AEP)

Although solar, wind, and geothermal stocks all represent viable options from which investors can choose, American Electric Power provides a less obvious approach. And fortunately for investors, they can currently find shares in the bargain bin.

American Electric Power has a presence in 11 states and provides electricity to about 5.5 million customers… Management has articulated a clear commitment to environmental, social, and corporate governance (ESG) values.

American Electric Power is currently offering investors an attractive 3.8% dividend yield on its stock.

2) Daniel Foelber recommends Dominion Energy (NYSE: D)

Dominion Energy is the latest utility stock to launch an aggressive push into renewable energy. The company is a leading energy provider in Utah, Ohio, Virginia, North Carolina, and South Carolina. Although Dominion’s portfolio is still mostly fossil fuels, it has done a good job of moving away from coal toward natural gas over the past 15 years…

Dominion yields an impressive 3.5% — much higher than the current market average of 1.5%…

Dominion looks to be a worthwhile renewable energy stock to buy now. 

3) Lee Samaha suggests Hubbell (NYSE: HUBB)

What about buying a highly cash generative value stock with some exposure to renewable energy related spending? That’s where electrical and electronic products company Hubbell comes into play. If you are going to have investment in renewable energy farms, you are going to need investment in the transmission and distribution (T&D) network, as well… Management expects its utility T&D components end market to grow 2% to 4% and utility communications and controls to grow 4% to 6%.” End quotes.

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3. Analysts’ Top ESG Energy Stocks

Now here’s the third energy-related article. It’s titled Got $3000? Here Are 3 Solar Stocks to Buy and Hold for the Long Term. It’s written by Matthew DiLallo — a regular to this podcast — and appeared on fool.com. Here are his picks followed by a few of his remarks.

1) Atlantica Sustainable Infrastructure (NASDAQ: AY)

Owns a diversified portfolio of infrastructure assets geared toward a more sustainable future, like renewable energy, natural gas, electricity transmission, and water desalinization. Renewable energy makes up the bulk of its revenue at 69% of the total.

2) Consolidated Edison (NYSE: ED)

Is a utility focused on delivering electricity to the New York City market. It’s one of the country’s cleanest utilities, as 71% of its power-generating capacity is renewable energy and the rest is cleaner-burning natural gas. Most of its capacity — 57% — is solar power.

Consolidated Edison… currently boasts an attractive 4.3% yield.

3) SolarEdge (NASDAQ: SEDG)

Makes an optimized inverter system that reduces the cost of energy produced by a solar system. That makes it a key component in making solar energy cheaper.” End quotes

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4. Analysts’ Top ESG Energy Stocks

Our fourth article in this series is titled 2 Top Stocks in Renewable Energy. Also appeared on fool.com and is by analyst Daniel Foelber — whom we also mentioned earlier. I’ll mention the companies and follow on with a few key quotes by Mr. Foelber.

1) Array Technologies (NASDAQ: ARRY)

Array is an industry leader in single-axis solar tracking systems. These tracking systems rotate solar panels throughout the day to optimize power generation. According to Bloomberg, trackers harness 25% more energy with just a 7% increase in project capital cost…

Array is expanding internationally to try to gain a foothold in emerging markets like China, Australia, Europe, and South America… Array stock has a much more attractive valuation than other big-name solar stocks and is growing at a faster rate as well.

2) TPI Composites (NASDAQ: TPIC)

TPI Composites is the largest independent manufacturer of wind blades and fills a niche role in the wind energy industry…

TPI Composites’ business strategy is simple. It believes in the long-term growth of the wind energy market. It has excellent partnerships with original equipment manufacturers. And it opens new facilities wherever the demand for wind energy is growing.” End quotes.

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End Comment

Well, these are my top news stories with their stock and fund tips — for this podcast: “ Analysts’ Top ESG Energy and Water Stocks.“

To get all the links, stock symbols, or to read the transcript of this podcast — and more — go to investingforthesoul.com/podcasts and scroll down to this episode.

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Stay well and healthy—and conscious about the ethical and sustainable values of your investments!

Thank you for listening.

Talk to you next on March 12. Bye for now.

© 2021 Ron Robins, Investing for the Soul.

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