This 100-Year Growth Trend Has Only Just Begun

Get into this trend early with ESG picks including Northland Power (TSX:NPI), Algonquin Power and Utilities Corp. (TSX:AQN)(NYSE:AQN) and Borax Inc. (TSX:BLX).

| More on:
A stock price graph showing growth over time

Image source: Getty Images.

Looking to put some hard-earned money to work for the next 10 years? How about for retirement, 20 or 30 years from now? How about for your grandkids?

In this article, I’m going to discuss one sector with a secular growth trend that I expect will vastly outpace the broader stock market, for the next 100 years at least.

Renewable power is ESG on steroids

Many investors may already be aware of the impact of the environmental, social, and governance (ESG) movement has had on financial markets to date. Prior to the COVID-19 pandemic, ESG investments, such as the renewable power sector, outperformed the broader stock market by a wide margin.

This has been due to mandates set by institutional investors dedicating a certain percentage of a given portfolio to companies boasting excellent environmentally friendly, sustainable, and/or good governance business models. The idea is this: what’s good for planet earth and humanity also is good for investors. This is an easy concept to sell.

Renewable power companies generally meet all three ESG requirements and are thus among the top choices for investors seeking exposure to this sector.

I’m now going to discuss three excellent options for investors to consider the renewable energy space. I genuinely believe these companies make for a century long holds for those so inclined.

Northland Power

One of the purest ways to play renewable energy, Northland Power (TSX:NPI) has been far less impacted by this pandemic largely due to its ESG prowess. The company’s focus is on offshore wind farms mainly in Europe. Northland currently has 2500 megawatts of capacity with another 1000 megawatts under development.

As a growth play in this sector, few companies can match Northland Power. This is due to the company’s growing Asian presence. The company is focused on expanding to Taiwan, Japan, and South Korea as key growth markets long term.

Heavy levels of pollution and decades of environmental deterioration make these markets key for those considering long-term investments in renewables.

The advantage Northland Power gives North American investors is early access to these growth markets. Investments in Asia are only going to grow exponentially. Northland really has been ahead of the curve in this regard, snapping up hard to get partnerships and opportunities at bargain prices.

Algonquin Power

A more fully diversified utilities player, Algonquin Power and Utilities Corp. (TSX:AQN)(NYSE:AQN) has a small but growing renewable power business. The company is also highly regulated. Algonquin sells its product at very stable and reliable prices with acceleration clauses, allowing for predictable long-term growth.

The company’s portfolio also includes water treatment assets I’ve viewed as under-valued in recent years, adding another layer of growth to Algonquin’s already impressive structure built for another 100 years.


A smaller Canadian renewable play, Boralex (TSX:BLX) is an electricity producer with excellent long-term upside. Given its smaller size relative to other large players in renewable energy, Boralex is a company some investors may flock to for outsized growth over the long term.

The company has a skilled management team. Borax also has one of the best growth outlooks among comparable companies of its size. This factors make Boralex an enticing ESG pick.

Stay Foolish, my friends.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends BORALEX INC.

More on Dividend Stocks

Dividend Stocks

Enbridge Stock: This Dividend Aristocrat Looks Like a Steal in 2023

Here are some key factors that make ENB a great Canadian dividend stock to buy on the dip in 2023.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

U.S. Debt Ceiling: Is It Safe to Invest Right Now?

The U.S. debt ceiling is in the headlines again. You can play it safe by investing long term in wonderful…

Read more »

analyze data
Dividend Stocks

How to Invest $20,000 to Make Ultra-Safe Passive Income

Got $20,000 to invest for passive income? These three stocks are perfect for earning ultra-safe passive income for the long…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

For Passive Income: How to Turn $25,000 Into $158 Per Month

High-yield, monthly dividend stocks trading on the TSX such as Slate Grocery can help you earn a predictable stream of…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Canadian Dividend Stocks to Buy for Consistent Passive Income

These top dividend stocks have raised their distributions annually for more than two decades.

Read more »

Piggy bank next to a financial report
Dividend Stocks

Self-Directed RRSP: 2 Top Dividend Stocks to Buy in June 2023

These top TSX dividend stocks look cheap to buy today and offer attractive dividend yields.

Read more »

Dividend Stocks

Looking for Reliable Retirement Income? Consider These Dividend-paying Stocks

National Bank of Canada and another reliable income stock that could be a perfect fit for your retirement fund this…

Read more »

grow money, wealth build
Dividend Stocks

Are You Looking for High-Yield Investments? 3 TSX Stocks That Offer Excellent Payouts

These dividend stocks all offer solid payouts, as well as yields in the five to six percent range. So get…

Read more »