Reasons To Bet On New Energy

3 Reasons to Invest in Renewable Energy Stocks; A green-powered future isn't the only basis for adding shares of clean energy stocks to your portfolio.

Scott Levine, March 22, 2021 (The Motley Fool)

“…[R]enewable energy stocks helped to supercharge many portfolios in 2020…[T]he iShares Global Clean Energy ETF soared more than 140%...[while] the S&P 500 climbed 16%...[This year] the iShares Global Clean Energy ETF has dipped more than 16%...[but there are still reasons] to believe that renewable energy stocks belong in investors' portfolios…1. Green energy is a great growth opportunity…The future is poised to become increasingly green…[G]rowth investors would be well-served to consider solar energy leaders like Enphase Energy (NASDAQ:ENPH) and SolarEdge Technologies (NASDAQ:SEDG)…

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…Two of the largest solar-stocks as measured by market cap -- Enphase at $21 billion and SolarEdge at $14 billion -- have both succeeded at consistently growing revenue and cash from operations over the past three years…2. Charge up your passive income stream…Brookfield Renewable Partners (NYSE:BEP), for example, currently represents an electric opportunity, providing unitholders with a 3.04% forward yield…The company's global portfolio represents an operating capacity of 20 GW and covers a wide swath of green energy assets, including solar, wind, energy storage, hydroelectric, and distributed generation…[and] a development pipeline representing 23 GW of operating capacity…3. This investment environment is a green light for growth…

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As interest rates remain low, renewable energy companies, which frequently look to the debt markets to finance their growth plans, are able to take advantage of more favorable financing terms and pursue ambitious growth projects. Alternatively, the low interest rates afford some companies the opportunity to improve their financial health…[And] the current enthusiasm for renewable energy among politicians represents another reason why green energy stocks may be poised to prosper…” click here for more

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