The U.S. election is an event that often creates big opportunities for investors. Every time an event like an election takes place, numerous TSX stocks will be impacted. And events like these only happen once every four years, so investors will want to take advantage of these occasions.
It’s important that investors pay attention to what each candidate says to get an idea of what may happen and what stocks may be impacted.
If you think Joe Biden might win the election, one thing he has continuously mentioned is his desire to invest heavily in renewable energy. According to his plan, it will be a big investment to create jobs and help fight climate change.
Here are three TSX stocks that have already started to see a boost and could get an even bigger jump if Joe Biden wins the election.
Algonquin: A high-quality TSX stock
Algonquin Power and Utilities (TSX:AQN)(NYSE:AQN) is the perfect stock for investors looking for safety and growth. Currently, only one-third of its business comes from renewable energy. The other two-thirds comes from its highly regulated utilities business, which is why it’s such a low-risk investment.
The company operates mostly in Canada and the United States. However, it also has some renewable energy assets in Latin America, Europe, and Africa.
The reason Algonquin is such an attractive stock is because it has a huge runway for growth, with or without a Joe Biden election win.
The company is in the midst of a major long-term capital growth plan, so I would expect the stock to continue to grow for decades from here.
And because the stock is a Dividend Aristocrat, you can bet that it will continue to increase its 4.1% yield.
Boralex: A robust green energy stock
Boralex (TSX:BLX) is a renewable energy stock that tends to fly more under the radar, as it’s one of the smaller green energy companies.
Nevertheless, the stock is just as high-quality as its peers and even offers quite a bit of reliability. The company has more than 99% of its generating capacity contracted. Furthermore, Boralex has lengthy power-purchase agreements (PPAs) with a weighted average length of more than 13 years. The amount of generating capacity it has contracted and the length of its PPAs are both better than the average of its peers.
Boralex has good diversification, too. Roughly 50% of its generation is in North America with the other 50% in France. Having exposure to the E.U. is attractive, especially since there is generally more enthusiasm for green energy in the E.U.
Lately, however, Boralex has been keen on entering the U.S. market and now has 4% of its generation coming from the United States. So, Boralex is definitely a stock that could see some big growth in the U.S. if Joe Biden wins the election.
Plus, the company is in a great position financially. It recently issued more shares, taking advantage of its impressive share price performance as of late. This capital raise was strictly to increase its credit capacity for future growth projects or acquisitions.
Northland: One of the top TSX stocks
Northland Power (TSX:NPI), the last pick, is one of the best long-term green energy stocks.
The company is one of the top choices in the renewable sector and has shown that this year. Northland is up roughly 60% year to date and more than 110% from its low in March.
A significant amount of its generation comes from offshore wind projects. These make up about 33% of its generating capacity, which has been a differentiator and part of Northland’s impressive performance.
A lot of that performance is due to its impressive growth. Northland entered the year with more than 2,000 megawatts of generating capacity and another 50% of that capacity in development. This represents significant short-term growth potential in addition to the natural long-term potential the whole industry has.
It operates in a defensive industry, pays a 2.75% dividend with a manageable payout ratio, and is well capitalized.
Bottom line
Renewable energy is one of the top industries to invest in today if you’re looking for a long-term TSX stock. These stocks have huge runways for growth, creating years of potential for investors, especially if Joe Biden can win the election.
