3 Renewable Energy Stocks to Buy for a Greener Future

The International Energy Agency (IEA) estimates that by 2025, 35% of the world’s electricity supply will be renewable energy. If that’s not a reason to consider renewable energy stocks to buy, I don’t know what is.  In fact, according to the IEA, most of the increased demand for electricity over the next three years will be from China and other large Asian economies. The agency estimates demand will increase by 4.6% annually in Asia Pacific, nearly five times the Americas, and eight times the U.S.

So, if you’re looking for renewable energy stocks to buy, a good place would be companies already operating renewable energy projects in Asia Pacific and have projects in the pipeline. It could be operators, investors, manufacturers, etc. To find possible options, I’ll use the actively-managed Virtus Duff & Phelps Clean Energy ETF (NYSEARCA:VCLN) for inspiration. It has a manageable 44 holdings and covers clean energy producers, technology and equipment manufacturers for renewable energy, and companies that distribute clean energy. Here are my three renewable energy stocks to buy.

NEE NextEra Energy $75.69
BEPC Brookfield Renewable $31.97
FSLR First Solar $211.10

NextEra Energy (NEE)

NextEra Energy (NYSE:NEE) gives you the best of both worlds. It owns the Florida Power & Light Company, America’s largest utility with 5.8 million customer accounts; it also owns NextEra Energy Resources LLC, the world’s largest wind and solar renewable energy producer. 

Because this is about renewable energy stocks, I will focus on NextEra Energy. It has 30 gigawatts (GW) of clean energy in operations, including 22 GW of wind (68% of its generation and storage capacity, 5 GW of solar power (14%), 2 GW of nuclear (7%), and 1 GW of battery storage (4%). The remaining 7% is from natural gas and oil. These assets total $71 billion. 

NextEra Resources has a 19 GW backlog of wind, solar, and storage contracts to keep it busy for the next few years. And that’s not even considering the green hydrogen opportunities it’s undertaking. But, of course, these things all take capital. That’s why NEE spun off NextEra Energy Partners LP (NYSE:NEP) in June 2014.

At the time of the spin-off, NEP had nearly 1 GW of contracted energy projects in North America.  Today, it’s approximately 10x that. NEE owns 46.2% of NEP’s operating company.  In the next 3-5 years, NEE’s share price will exceed $100. Yielding a reasonable 2.5%, why not get paid to wait for the business to come to NextEra?

Brookfield Renewable (BEPC)

Brookfield Renewable (NYSE:BEPC), one of the Brookfield Asset Management (NYSE:BAM) affiliate businesses, is used to making big acquisitions in the renewable energy space. For example, in Oct. 2022, BEPC partnered strategically with Canadian uranium producer Cameco (NYSE:CCJ) to acquire Westinghouse Electric, one of the world’s largest nuclear services businesses. 

The price tag? Approximately $7.88 billion, with Brookfield and its institutional partners putting in $2.3 billion equity for 51% of the strategic partnership.

On March 20, Brookfield Renewable announced that it would acquire the 50% of Spanish solar power operator X-ELIO that it didn’t already own from KKR & Co. (NYSE:KKR). The deal valued the entire business at $2.68 billion. Once completed, it will own a renewable energy company with 3 GW of capacity. 

Brookfield finished 2022 with 25,377 MW capacity with more than 110,000 MW in development. In 2022, it generated $4.7 billion in revenue, with funds from operations of $1.01 billion. A Brookfield entity combined with renewable energy equals a very bright future.

First Solar (FSLR)

First Solar (NASDAQ:FSLR) is one of the world’s leading manufacturers of solar panels. Its stock’s been on quite a run since last July, up 174%, considerably higher than the 4% return from the S&P 500. Of course, it’s an apples-to-oranges comparison, but you can’t help but be impressed with this kind of return.  

While the entire sector is hot due to the incentives provided by the Inflation Reduction Act for Americans to buy solar panels and clean energy, First Solar could be a big beneficiary of the legislation, according to UBS analyst Jon Windham. “[First Solar], the most significant beneficiary of the Inflation Reduction Act (IRA) with high visibility on capacity, revenue and earnings growth through 2026,” Barron’s reported Windham’s comments from early March. 

First Solar estimates it will receive at least $660 million in IRA tax credits. In 2023, it expects to earn $3.5 billion at the midpoint of its guidance with $7.50 a share in earnings. It currently trades at 28x its 2023 earnings. While that might seem like a high valuation in these markets, First Solar has 67.7 GW of contracted backlog, with 38% of it to be delivered in 2026 and beyond. So it’s got plenty of work to keep it busy. 

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

 

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7 EV Stocks to Sell as Competition Heats Up

Although electric vehicle stocks have become far less hot during this bear market, the pivot towards vehicle electrification keeps moving forward. Even so, that doesn’t mean every EV stock is a buy. In fact, there are plenty of names one should consider EV stocks to sell. Why? The overall trend may be favorable, but in the case of several publicly-traded EV makers, there’s a headwind that far outweighs this tailwind: rising competition. Since the start of the year, Tesla (NASDAQ:TSLA) has shored up its leading position in the global EV market, by slashing vehicle prices.

In addition, incumbent automakers around the world are moving into EVs in a big way. Tesla may be able to stay ahead, but these “old school,” suddenly “new school” competitors could leave plenty of EV upstarts in the dust. With rising competition potentially limiting their chances of reaching big success, consider it best to steer clear of these seven EV stocks to sell.

GOEV Canoo $0.59
LCID Lucid Group $8.19
MULN Mullen Automotive $0.11
NIO Nio $9.07
RIDE Lordstown Motors $0.64
RIVN Rivian Automotive $13.62
XPEV Xpeng $9.62

Canoo (GOEV)

As a maker of EVs primarily for the commercial market, at first Canoo (NASDAQ:GOEV) may seem more immune to competition compared to the EV makers focused on the passenger market. However, while the company may be having little trouble securing orders (given its more than $2 billion backlog) for now, competition could start having an impact, as “old school” automakers move into the electrified commercial van market. That said, the biggest concern with GOEV stock continues to be this early-stage EV company’s high levels of cash burn.

In order to stay in business, and to finance its expansion, Canoo has depended on dilutive capital raises. The most recent one (raising $52.5 million) occurred in Feb. Canoo may have a better shot of success than many of the other names listed below, yet with high dilution, this may not translate into big gains for investors.

Lucid Group (LCID)

Two years ago, Lucid Group (NASDAQ:LCID) may have been successfully selling itself to investors as a “Tesla killer” in the making, but as I argued recently, this EV maker has since lost its “young gun” reputation.

With underwhelming production and delivery numbers, the company has fallen from top contender to also-ran, in the EV pecking order. With all of this competition, atop the market’s more cautious view on EV stocks, it’s not surprising that LCID stock has fallen by more than 68% in the past year.

Worse yet, competition keeps standing in its way. Lucid’s reservation numbers keep dropping. This may be a sign that affluent EV buyers are taking a pass on the Lucid Air luxury sedan, opting instead for comparable offerings from Tesla, as well as from established automakers. Add in its own big dilution risk, and LCID is clearly one of the EV stocks to sell.

Mullen Automotive (MULN)

Trading for well below $1 per share, the market has obviously made up its mind about Mullen Automotive (NASDAQ:MULN). Perceived positives such as the company’s controversial battery claims at one point wowed investors.

But after a year of zero sales, heavy losses, and high levels of shareholder dilution, few are buying into the MULN stock story anymore. Yes, Mullen has reached the production stage, and is securing orders for its vehicles. However, Mullen needs cash to scale up production of its existing and planned offerings, including its Mullen Five crossover model for the premium passenger EV market.

Raising this capital will result in additional heavy dilution. With regards to competitive risks, by the time it starts rolling Mullen Fives off the assembly line, the premium EV market will be a crowded field. By then, several of the passenger EV upstarts will be much further ahead.

Nio (NIO)

Slowing growth has been a key reason why Nio (NYSE:NIO) shares have underperformed over the past twelve months. In early 2022, the China-based EV maker’s management was touting a big production ramp-up at the end of last year.

Yet due to the impact of China’s Covid lockdowns on the country’s supply chain, this big ramp-up failed to arrive. Thus far this year, growth challenges have persisted, placing more pressure on NIO stock. The end of China’s EV subsidies have likely played a role, but the impact of Tesla’s price cuts has also been a big factor.

Nio’s management is still arguing that it can sell 250,000 vehicles this year. That’s more than double last year’s figure. However,  competition is likely to make achieving this sales goal easier-said-than-done. NIO could experience yet another big plunge, if actual results fall short, making this another of the EV stocks to sell.

Lordstown Motors (RIDE)

As I put it recently, Lordstown Motors (NASDAQ:RIDE) has clearly reached the end of the road. One of the first electric truck startups to go public, this EV stock once traded for more than $30 per share, as the market at the time believed it has a shot of becoming a major name in this space.

Today, you can buy RIDE stock for just 67 cents per share, but even at a nearly 98% discount to its all-time closing high, it’s far from a bargain. Pausing production/deliveries in February, due to quality issues, Lordstown’s management is searching for a strategic partner, in order to enter the mass-production stage for its Endurance electric pickup truck.

The problem? Based on the fact that basically every major pickup manufacturer has its own EV pickup on the road or in the works, the chances Lordstown secures a partner appear to be slim-to-none.

Rivian Automotive (RIVN)

Rivian Automotive (NASDAQ:RIVN), in contrast to Lordstown, is an electric truck maker that has made major progress getting towards the mass production stage. However, that doesn’t mean it is being incorrectly placed on this list of EV stocks to sell.

In recent weeks, investors have bid down RIVN stock. Its progress notwithstanding, the company’s growth has fallen short of expectations. Cash burn has also been significant, raising concerns about (you guessed it) future dilution from likely equity raises down the road. That’s not all. The impact of competition could affect Rivian’s future performance, and put more pressure on RIVN’s stock price.

Why? Ford (NYSE:F), which before selling its stake was a large backer of Rivian, is now outselling it, based on recent F-150 Lightning sales numbers. Through tactics such as vehicle price cuts, it may not take much for Ford to leave Rivian completely in the dust.

Xpeng (XPEV)

Tesla’s China vehicle price cuts have hurt Nio, yet they’ve had a greater impact on Xpeng (NYSE:XPEV), another major Chinese EV maker. In response to lower Tesla prices, and disappointing 2022, Xpeng implemented its own vehicle price cuts.

While this led to disappointing outlook for the first quarter of 2023, the company’s management believes that these price cuts, plus the planned launch of new vehicle models, will result in a growth resurgence. XPEV stock has rallied in recent weeks. This suggests the market is also bullish that a comeback is in store.

But while Xpeng may have a game plan, this may not be enough to spark a sales rebound. According to a Chinese EV industry expert, Tesla has lowered its prices in China enough to make them affordable for mass market EV buyers in China. This unexpected mass market competition could quell an Xpeng comeback.

On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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3 Dividend Stocks Sitting in the Sweet Spot

Investing in dividend stocks is a preferred method for those looking to enjoy a passive income stream in retirement. Of course, there’s plenty of market uncertainty right now that could dissuade investors from this group. That said, there’s always pockets of the market with strong fundamentals, and I think certain dividend stocks can still provide long-term investors with stability and security.

I’m focusing on companies that consistently raise their payouts. Dividend growth is an important factor to consider. Additionally, the companies on this list all have strong fundamentals, and are among the steadiest blue-chip names I’m considering for the long-run.

Of course, when it comes to dividend investing, it is important to know which stocks to buy and when. Few companies have proven that they can handle inflation well, and with a potential recession on the horizon, defensiveness is an important attribute to consider. Thus, it’s not all about the dividend yield – investors will need to take a more holistic view of their dividend stocks, to ensure a better understanding of their risk profile moving forward.

With that said, here are three dividend stocks I think investors should focus on right now.

RIO Rio Tinto $64.67
CVX Chevron $156.06
KO Coca-Cola $60.90

Rio Tinto (RIO)

the rio tinto (RIO) logo on a building during daylight

Source: Rob Bayer / Shutterstock.com

At the top of my list of dividend stocks to buy is Rio Tinto (NYSE:RIO). A well-known name among dividend-paying companies, RIO stock pays investors a current yield of more than 7%.

Currently, RIO stock is up approximately 25% over the past six months. I think this trend will ultimately continue. That’s because, while Rio Tinto recently reduced its dividend due to a slowdown in China, its dividend of $4.92 per share still far exceeds its peers. Additionally, even when investors factor in potentially lower profits amid slowing Chinese demand, Rio’s solid dividend distribution remains juicy.

Rio’s operational performance has also been solid, as is its valuation. With free cash flow of $9 billion, Rio Tinto has plenty of room to continue to pay its high yield. Additionally, the company’s core metals and materials mining business is evergreen. Demand for the key metals Rio Tinto produces will only grow over time, as electrification and green energy trends continue to dominate.

Additionally, once China fully reopens and global demand stabilizes, we could see higher growth. Indeed, if you look at the future potential of the company, it’s staggering. Rio Tinto will likely play a major role in the development of key industries, given its exposure to lithium mining.

With plans to invest $25 billion over the next two years, Rio Tinto is projected to provide investors with significant revenue growth, and thus higher dividends. Goldman Sachs (NYSE:GS) has a buy rating on the stock, and believes the company has a compelling relative valuation as compared to its peers. 

Chevron (CVX)

CVX stock

Source: tishomir / Shutterstock.com

One stock that can outperform all energy stocks is Chevron (NYSE:CVX). That’s partly due to the fact that Chevron recently increased its dividend by 6% following record earnings, now paying out $1.51 per share.

Chevron investors enjoy a dividend yield of 3.9%, and have enjoyed these dividends for 37 consecutive years. That sort of stability and growth over time is what I’m looking for in a top dividend stock to buy.

Besides its stable financials and consistent dividends, Chevron has attracted a lot of investor interest due to its buyback program worth $75 billion. The buyback will come into effect onApril 1. Notably, Berkshire Hathaway (NYSE:BRK-B) is the single largest shareholder in the company, a positive factor that requires no discussion whatsoever.

In its recent quarterly results, Chevron announced a profit of $35.5 billion for 2022, which is a record year. With oil prices seeing strength, it’s likely Chevron will continue to pump out record profits. And even if oil prices decline, there’s ample financial flexibility with this stock to handle a downturn. 

Coca Cola (KO)

coca-cola bottles and cans. coke is a blue-chip stocks

Source: Fotazdymak / Shutterstock.com

If you are looking for a blue-chip, reliable dividend stock to invest in, Coca-Cola (NYSE:KO) is a good pick.

The company provides investors with a dividend yield of over 3%. And, like other names on this list, Coca-Cola is also a dividend aristocrat.

Coke has paid dividends consistently for 61 years, enticing some of the greatest dividend investors of all time to own this stock. In fact, Warren Buffet has been a long-term investor in the company, receiving a massive dividend payment each and every year.

One of the key reasons I think Buffett likes Coca-Cola is the fact that this is one company that can survive any market environment. If another pandemic or major recession takes hold, Coca-Cola will be able to weather the storm. It’s a highly-reliable stock investors can simply buy and forget about.

Additionally, Coca-Cola is no longer just a beverage company, diversifying into healthy snacks. A well-known name with a long-standing history, Coca-Cola is a stock that will add value to your portfolio. Do not expect the stock to show major upside anytime soon, but it will stay steady over the near term. In this market, that’s the kind of dividend stock investors should be looking for.

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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Sri Lanka in talks to extend $1B Indian credit line as IMF deal looms

Economy

07 March 2023, 2:08 pm 1 minute

Sources exclusively revealed to Reuters that Sri Lanka is negotiating with India to extend a $1 billon credit line by a few months as the island nation tries to line up funds for the remainder of the year while the IMF looks prepared to approve a $2.9 billion loan. The extension talks come as the economy improves and forex reserves rise for Sri Lanka, where huge protests took place last year amid widespread shortages of essentials after the COVID-19 pandemic hurt tourism and remittances while exposing low tax revenues.

Market Impact

Sri Lanka’s central bank said on Tuesday that the country’s official reserves had risen by 4.5% to $2.22 billion in February (vs. previous month). China and India are Sri Lanka’s biggest lenders and both seek influence on the island located on a busy shipping route on the Indian Ocean.

Article Tags

Topics of Interest: Economy

Type: Reuters Best

Sectors: Economy & Policy

Regions: Asia

Countries: Sri Lanka

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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Reuters exclusively reported that India plans to extend fuel export curbs beyond March

Energy

20 March 2023, 2:32 pm 1 minute

Reuters exclusively reported that India intends to extend restrictions on the export of diesel and gasoline at the end of the month to ensure availability of refined fuels for the domestic market. The extension of rules may discourage some Indian refiners from buying Russian fuels for re-exports. The restrictions were introduced after private refiners, including Reliance Industries (RELI.NS), began reaping profits by aggressively increasing exports rather than domestic sales. After the Reuters report, shares of Reliance fell as much as 1.71% to 2,184.15 rupees, the lowest since March 8, 2022.

Market Impact

After the Reuters report, shares of Reliance fell as much as 1.71% to 2,184.15 rupees, the lowest since March 8, 2022.

Article Tags

Topics of Interest: Energy

Type: Reuters Best

Sectors: Commodities & Energy

Regions: Asia

Countries: India

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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GSK says it disagrees with California state court ruling on Zantac

U.K. pharmaceutical giant GSK on Friday said it disagreed with a California state court ruling on Zantac, or ranitidine, and its links with cancer. “Following the 13 epidemiological studies conducted looking at human data regarding the use of ranitidine, the scientific consensus is that there is no consistent or reliable evidence that ranitidine increases the risk of any cancer,” the pharmaceutical said. It added the decision relates only to the question of whether the plaintiff’s experts can testify at trial. “It does not mean that the Court agrees with plaintiff’s experts’ scientific conclusions or their litigation-driven science,” the company said. GSK
GSK,
-3.70%
shares fell 4% in London.

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Reuters reveals hedge fund Ancora seeks ouster of Kohl’s CEO, chairman

Business & Finance

22 October 2022, 1:40 pm 1 minute

Reuters exclusively reported that Ancora Holdings, one of the hedge funds that spearheaded a board shake-up at Kohl’s Corp, is now pushing for the removal of the U.S. retailer’s chief executive and board chairman. The move marks the beginning of a new round of shareholder unrest for Kohl’s after the company explored a sale and decided in July to remain independent, leading to a plunge in its shares and disappointing investors who had pushed for a deal.

Article Tags

Topics of Interest: Business & Finance

Type: Reuters Best

Sectors: Equities

Regions: North America

Countries: US

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Important Regional Story

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Reuters exclusively reports that India resists calls for more air access in the drive to be a global aviation force

21 March 2023, 2:00 am 1 minute

Reuters exclusively uncovered that India is resisting pressure from foreign airlines to increase traffic rights, while encouraging domestic carriers to venture into long-haul flights. Additionally, Reuters reported on tensions brewing among foreign airlines prompted by Air India’s dramatic expansion.

Market Impact

The South Asian nation is one of the fastest-growing aviation markets in the world where demand for air travel is outstripping the supply of planes, but the bulk of international traffic is captured by global carriers with efficient hubs.

Article Tags

Type: Reuters Best

Sectors: Aerospace & Defence

Regions: Asia

Countries: India

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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Reuters exclusively reports that India resists calls for more air access in the drive to be a global aviation force

21 March 2023, 2:00 am 1 minute

Reuters exclusively uncovered that India is resisting pressure from foreign airlines to increase traffic rights, while encouraging domestic carriers to venture into long-haul flights. Additionally, Reuters reported on tensions brewing among foreign airlines prompted by Air India’s dramatic expansion.

Market Impact

The South Asian nation is one of the fastest-growing aviation markets in the world where demand for air travel is outstripping the supply of planes, but the bulk of international traffic is captured by global carriers with efficient hubs.

Article Tags

Type: Reuters Best

Sectors: Aerospace & Defence

Regions: Asia

Countries: India

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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