As the world transitions from its heavy dependence on fossil fuels to clean energy sources such as hydroelectric, wind, and solar, the rise of renewable energy is the inevitable future. With the momentum towards green energy building up, clean energy stocks make for a lucrative investment. Let’s take a look at best clean energy stocks Canada has to offer.
Frequently Asked Questions
The green and clean energy revolution is happening now and it may grow faster than you think. So to profit from this trend, the best thing to do so is to invest in related stocks. But before investing, do thorough research on the company’s financials and future prospects. Also, make the company your are invested in is truly green and clean, especially if investing in ETFs or mutual funds through robo-advisors. This will ensure that you are not invested in options that are renewable only in name.
With the transition to clean energy still in its early stages, government policies and mandates regarding sustainable energy are still developing. Make sure you are clued into these developments before increasing the amount of risk in your portfolio.
Climate change has forced the energy sector to innovate and look towards more environmentally friendly sources of energy. It has made renewable energy stocks very attractive, but the best one currently trading on the TSX is the Ontario-based Algonquin Power & Utilities Corp (AQN)*.
Founded in 1988, the $12.02 billion market capitalization company is heavily invested in renewable energies and offers a dividend yield of 4.88*%. The company operates across multiple sectors in North America and has over 267,000 electrical connections and 369,000 gas connections.
*As of February 14, 2022
That entirely depends on the relative price of each stock. Research the stock to see if it is undervalued or overvalued and check details such as dividend yield, market cap and past performance to determine if you are paying the right price.
The renewable energy sector has been thriving for the past few years and is rapidly becoming an important industry in nations across the globe. The market acted very favorably for renewable energy stocks in 2021, and more gains may be in the offing.