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Growth Investors: Ride This Global Trend for a Decade of Wealth Creation

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Looking for the number one international trend in growth for the new decade? The green economy will see big changes in practically every consumer- and energy-driven industry in the 2020s. From cutting out single-use plastics to driving down harmful emissions, the next 10 years will see a sea change in the way the world uses — and does not use — natural resources.

For high growth, try the green economy

Alternative protein investors enjoyed upside some key stocks last year, such as Beyond Meat, which briefly broke out. A lower exposure play would be Restaurant Brands, which has taken the canny step of adding meatless items to menus, as well as grocery retailers such as Loblaw that carry meatless foods. Of course, such investments are also a play on the strongly defensive consumer staples space.

Talking of defensive investments, energy stocks are also a potentially rewarding long-term strategy for wealth creation. Green energy is one of the most notable areas of sustained growth on the international stage, with the drive to a zero emissions planet featuring highly on agendas both political and industrial as we enter the new decade.

It’s not just about scoring political points, though — there is big money to be made in alternative energy. Business innovation could see new companies steal the thunder from major fossil fuel corporations in the 20s, with the chance for new initiatives to go public, scale up, and disrupt the way the world makes and uses energy. In short, the green energy area could make investors rich by the end of the 20s.

New green investors will have ground-floor opportunities

As Jim Cramer says, “Even if you don’t have time to do homework, the stock market is still the best tool out there for growing your wealth, and thanks to the magic of compounding, the earlier in your life you start investing in the market, the bigger your long-term gains can be.”

It’s not too late to get in at the ground floor, either. Late last year, a little-known solar energy company called Heliogen made headlines when it won the endorsement of Bill Gates, who has also thrown his weight behind a movement to resurrect mainstream nuclear power. If Heliogen went public, green energy investors would have a hot new IPO to get into.

Keeping with the renewable theme, wind farms are also going to be big this decade — perhaps even bigger than the potential for a rebooted nuclear industry. Northland Power is a strategic play here, with international partnerships as far flung as Western Europe and Japan. With exposure to wind, solar, biomass, and natural gas, Northland is strongly diversified and pays a 4.4% yielding dividend.

The bottom line

Investors seeking energy upside in a time of lower oil and pipeline holdups have a strong option in the green power sector, which can offer passive income to the low-risk dividend stockholder along with the built-in tailwinds of a worldwide growth trend. Northland offers an especially good mix of sources and pays a tasty dividend.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool recommends RESTAURANT BRANDS INTERNATIONAL INC.

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