THE DAILY ENCRYPT

September 25, 2022

My 3 best renewable energy stocks to buy with £1k today

These are the best renewable energy stocks to buy today, argues Roland Head. He explains how he'd aim to profit from the energy transition. The post...
Photo by geralt

I expect demand for zero carbon energy to grow for the rest of my life. But what are the best renewable energy stocks to buy today?

One challenge is that we don’t know which technologies will be long-term winners. Wind and solar seem pretty certain, but what about hydrogen and nuclear? I’d also want exposure to energy efficiency and recycling. Reducing resource usage is always going to be a win-win for the environment.

Given this uncertainty, the investment strategy I’d use today would be to build a mini portfolio of three renewable energy stocks. That way, I’d have a horse in the race, however the renewable energy market develops. Here’s what I’d buy.

Wind + more

My first stock would be FTSE 250-listed firm The Renewables Infrastructure Group (LSE: TRIG). This business has its roots investing in UK wind farms, but is gradually expanding into other types of energy and into Europe.

I’ve been following TRIG for several years and have been impressed by the management of the group. Each year’s results have generally been as expected. The dividend has grown steadily and currently offers a tasty 5% yield.

The main risk I can see here is that a lot of TRIG’s income still comes from subsidised wind farms with fixed energy prices. In the future, more of TRIG’s income will come from energy sold at market prices, so profits could be more volatile.

Even so, I think TRIG’s experienced management are handling the transition well. I’d be happy to buy TRIG today.

Nuclear stockpile

Some environmentalists are strongly opposed to nuclear power. I think it can be part of the solution to our energy needs, providing reliable low-carbon energy regardless of weather conditions.

One way I’d invest in nuclear energy is through Yellow Cake (LSE: YCA). This company buys and sells uranium, which is used to fuel nuclear power stations. The company held 15.8m lb of uranium at the end of 2021, highlighting its long-term strategy.

There’s plenty that could go wrong here. Yellow Cake buys most of its uranium from Kazakhstan producer Kazatomprom, so there are political risks. The value of the group’s assets is also dependent on the price of uranium, which is hard to forecast.

I don’t know how these risks will pan out. But I believe Yellow Cake’s assets are likely to remain valuable in the future. I’d be happy to tuck some of these away as a play on nuclear power.

An alternative renewable energy stock

My final choice is focused on energy efficiency. Impax Environmental Markets (LSE: IEM) is an investment trust that buys shares in companies involved in cleaner or more efficient delivery of energy, water, and waste disposal services.

Around half IEM’s assets are in North America, with one third in Europe, and the remainder in the Asia-Pacific region. I believe the technologies and businesses backed by IEM will be crucial to our future, regardless of where we’re getting our energy from.

Buying this stock would give me exposure to companies and markets that I wouldn’t invest in directly. Although some of the shares in the portfolio look expensive to me at the moment, I think many of them offer great long-term growth potential. IEM is a stock I’d tuck away for the next decade.

The post My 3 best renewable energy stocks to buy with £1k today appeared first on The Motley Fool UK.

Our 5 Top Shares for the New “Green Industrial Revolution”

It was released in November 2020, and make no mistake:

It’s happening.

The UK Government’s 10-point plan for a new “Green Industrial Revolution.”

PriceWaterhouse Coopers believes this trend will cost £400billion…

…That’s just here in Britain over the next 10 years.

Worldwide, the Green Industrial Revolution could be worth TRILLIONS.

It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!

Access this special “Green Industrial Revolution” presentation now

More reading

2 renewable energy stocks I’d buy to boost my passive income
Why I’m buying this renewable energy stock for income and growth
2 top dividend stocks to buy for an ISA this year
2 of my best dividend stocks to buy now

Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

admin

admin

admin

admin

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Latest News
PRESS RELEASES