Top Infrastructure Stocks And More. They include Vulcan Materials, Martin Marietta Materials, Vale, Caterpillar, Deere, United Rentals, Freeport-McMoRan, Brookfield Infrastructure Corporation, Eaton, Crown Castle International, American Water Works, Brookfield Renewable Partners, Vanguard FTSE Social Index Fund, Trillium ESG Global Equity Fund, Shelton Green Alpha Fund, Vert Global Sustainable Real Estate Fund, TIAA-CREF Green Bond Fund
PODCAST: Top Infrastructure Stocks. And More…
Transcript & Links, Episode 54, March 26, 2021
Hello, Ron Robins here. Welcome to podcast episode 54 published on March 26, titled “Top Infrastructure Stocks. And More…”— 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.
1. Top Infrastructure Stocks.
Now, I’m starting by talking about top infrastructure stocks. infrastructure stocks. This sector is hot right now because government infrastructure spending is making huge leaps around the world.
However, remember, that building infrastructure to support transportation developments or electricity generation with solar or wind, etc., requires huge amounts of mining and basic resources no matter how you build it. Most ethical and sustainable investors will be fine with this while others won’t.
So, this article 12 Best Infrastructure Stocks for Biden’s Next Big Plan by Charles Lewis Sizemore is timely. It’s another great analysis you can find on Kiplinger.com
I’ll mention Mr. Sizemore’s recommendations followed by some brief quotes by him on each company.
Incidentally, to check on the sustainability profiles of each company, Yahoo! Finance is a good place to start. Enter the company name in their search box and look for the ‘Sustainability’ tab on the navigation panel.
“1) Vulcan Materials (VMC)
It’s America’s largest producer of construction aggregates, which includes things like crushed stone, sand and gravel, and a major producer of asphalt and cement. Aggregates make up 76% of the company’s revenues and 91% of its gross profit…
2) Martin Marietta Materials (MLM)
Marietta is a building materials company that specializes in the materials used in large construction and infrastructure projects. Among other things, it makes crushed sand and gravel products, ready-mixed concrete and asphalt, and paving products and services… Martin Marietta’s chemical products are used in flame retardants, wastewater treatment, and assorted environmental applications.
3) Vale (VALE)
Brazil’s Vale is first and foremost a miner of iron ore. Vale also is the world’s leader in nickel mining, and is a significant producer of copper, gold, silver and other metals…
80% of its electricity usage is already sourced from renewables, primarily solar and wind farms.
4) Nucor (NUE)
… the largest domestic steelmaker in North America.
5) Caterpillar (CAT)
Easily the most iconic maker of construction and mining equipment… Much of the reason for its poor performance in the years leading up to 2020 was weakness in emerging markets… But looking ahead, Caterpillar’s exposure to EMs should be considered a positive once again.
6) Deere (DE)
… is known best as a maker of tractors and other heavy-duty farm equipment… It’s also a major producer of construction and forestry equipment.
7) United Rentals (URI)
United operates a network of 1,165 rental locations… (in) two segments: General Rentals and Trench, Power and Fluid Solutions. The General Rentals segment rents out what you would think of as typical construction equipment: backhoes, forklifts, earthmoving equipment, boom lifts, etc. The Trench, Power and Fluid Solutions segment rents out specialty equipment specifically designed for underground work and fluid treatment.
8) Freeport-McMoRan (FCX)
… it’s one of the world’s largest and best-run copper miners…
Electric vehicles use about four times as much copper as traditional internal combustion vehicles. Also, the transition to solar and wind energy will require major investments in copper, too, as renewable energy uses more than four times as much copper as good, old-fashioned oil and gas.
9) Brookfield Infrastructure Corporation (BIPC)
Together with its sister company Brookfield Infrastructure Partners (BIP), Brookfield is one of the largest diversified infrastructure stocks in the world, with operations spanning utilities, transportation, energy and even data infrastructure.
10) Eaton (ETN)
Eaton isn’t a pure play on green energy. But, as a major supplier of electrical components and systems, it is an important part of the story. Wind and solar farms have to be integrated into the national grid, and that’s exactly what Eaton does.
11) Crown Castle International (CCI)
Biden’s campaign pledge to ‘build back better’ specifically… included a promise to provide universal broadband coverage.
Crown Castle owns more than 40,000 cell towers and around 80,000 route miles of fiber supporting around 80,000 small cells.
Mobile data usage will continue to grow at a blistering rate for the foreseeable future, and Crown Castle is a solid way to play that trend. It also happens to pay a respectable 3%-plus dividend, and it’s stated goal is to grow that cash distribution by 7% to 8% per year.
12) Global X U.S. Infrastructure Development ETF (PAVE)
If you’re looking for a single one-stop shop, the Global X U.S. Infrastructure Development ETF is a solid choice…
Per its investment mandate, (it) ‘seeks to invest in companies that stand to benefit from a potential increase in infrastructure activity in the United States,’ and in raw materials, heavy equipment and construction in particular.” End quotes.
2. Top Infrastructure Stocks
Two more top infrastructure stocks are included in this article 3 Top Stocks to Hold for the Next 20 Years by Neha Chamaria. It appeared on fool.com.
“1) American Water Works (NYSE: AWK)
First, American Water treats and delivers more than a billion gallons of water every day… Second, it has predictable capital deployment plans that almost assure earnings, and with earnings comes dividend growth… Third, work on President Biden’s aggressively campaigned infrastructure bill is already under way, and clean water is one of his top priorities. American Water Works is in the sweet spot.
The company foresees 7% to 10% compound annual growth over each of the next five years in earnings per share (EPS) and dividends. American Water is a best-in-class utility dividend stock, having increased its dividend every year since going public in 2008.
2) Brookfield Renewable Partners (NYSE: BEP) (NYSE: BEPC) (as distinct from Brookfield Infrastructure Corporation covered earlier)
(It) wants to grow its annual dividend by 5% to 9% and deliver 12% to 15% annualized returns in the long term. That’s an easily achievable goal given the massive growth opportunity ahead for the company as the world shifts from fossil fuels to clean energy. With Biden also proposing a monster climate plan emphasizing clean energy, Brookfield is a surefire winner in the making.
Brookfield is one of the world’s largest publicly traded renewable companies and among the best you could find to bet on in the industry given its diversity: The company primarily deals in hydropower, but it has recently expanded into solar and wind energy such that hydropower now makes up only about 66% of its portfolio.
3. 7 Green Mutual Funds to Buy Now
Moving onto a familiar theme, Matt Whittaker gives his 7 Green Mutual Funds to Buy Now. It was posted on USNews.com.
“1) Vanguard FTSE Social Index Fund (VFTAX)
While the fund is passively managed and tracks an index, it does represent a broad set of companies screened for certain ESG factors. The fund also comes with a low annual expense ratio of 0.14%.
2) Trillium ESG Global Equity Fund (PORTX)
(Is) actively managed (and) participates in shareholder activism… This fund invests domestically and internationally, including emerging markets… The fund’s expense ratio is a bit high, at 1.3%.
3) Shelton Green Alpha Fund (NEXTX)
This fund’s stated investment objective is to ‘achieve long-term capital appreciation by investing in stocks in the green economy,’ and Earth Equity Advisors CEO Peter Krull likes its forward-looking philosophy. ‘They owned Moderna (MRNA) before anyone knew who the hell Moderna was… (The fund) has an expense ratio of 1.28%.
4) Vert Global Sustainable Real Estate Fund (VGSRX)
Vert Asset Management says the real estate sector offers ESG investors opportunities to capitalize on companies increasing the value of their buildings by making them ‘healthier, more efficient and more profitable…’ It comes with an expense ratio of 0.5%.
5) Thornburg Better World International Fund (TBWAX)
Investing internationally can carry more risk than domestic picks, both for returns as well as environmental sustainability. That said, putting money abroad can also mean higher returns – and it doesn’t have to mean investing in companies with shoddy environmental practices… Thornburg Better World International Fund has a higher expense ratio than others on this list, at 1.83%.
6) Calvert Emerging Markets Equity Fund (CVMAX)
Calvert seeks to invest in companies that, among other things, manage water scarcity and ensure efficient and equitable access to clean sources, diminish climate-related risks, and drive sustainability innovation and resource efficiency.
7) TIAA-CREF Green Bond Fund (TGROX)
The fund ‘invests in bonds whose proceeds target positive outcomes via renewable energy, climate change, and natural resource projects and initiatives without compromising return potential,’ according to its website. It comes with an expense ratio of 0.8%.” End quotes.
Well, these are my top news stories with their stock and fund tips — for this podcast: “Top Infrastructure Stocks. And More…“
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Talk to you next on April 9. Bye for now.
© 2021 Ron Robins, Investing for the Soul.