Investors who want to participate in the fight against climate change actively tend to lean towards green stocks. The TSX has excellent choices, and you can buy shares of three companies in the clean energy space to make an impact with your investments.
Sector powerhouse
Brookfield Renewable Partners (TSX:BEP.UN) is a low-volatile, no-brainer choice if you’re investing responsibly for the long term. The $23.6 billion owner of renewable power generating facilities is part of the Brookfield Asset Management family. It operates in North America, Brazil, China, Colombia, India, and Europe.
At $37.68 per share, current investors enjoy an 8.67% year-to-date gain on top of the attractive 5.16% dividend. Despite the US$295 net loss last year, management said it was the strongest year for growth to date. Its chief executive officer (CEO), Connor Teskey, said, “2022 was another successful year, continuing our track record of double-digit average annual funds from operations (FFO) growth for more than a decade.”
Teskey added that the company is uniquely positioned and remains a leading global owner, operator, and builder of clean energy. Brookfield Renewables has a strong balance sheet, liquidity position and access to institutional capital. It could capture the largest and most attractive decarbonization investment opportunities worldwide.
Turnaround utility stock
Expect Boralex (TSX:BLX) to turn positive following the stronger balance sheet, higher discretionary cash flows, and increased production capacity after fiscal 2022. While net earnings last year declined 69% to $8 million versus 2021, net cash flows increased 133.3% year over year to $189 million.
Its president and CEO Patrick Decostre said, “Fiscal 2022 was marked by a significant increase in our generating capacity and project portfolio. We crossed the milestone of three gigawatts in installed capacity at year-end.” Moreover, the portfolio of projects under development and construction grew by 81% compared to 2020.
The $3.79 billion producer of hydroelectric, solar, and onshore wind power has been providing renewable energy for over three decades already. If you invest today, the utility stock trades at $36.92 per share (-7.31% year to date) and pays a modest 1.81% dividend.
A cheap, compelling option
Lion Electric Company (TSX:LEV) is a cheap, compelling option for clean and green investors. This $689.6 million company manufactures all-electric medium- and heavy-duty urban vehicles. Its share price is only $3.12 (+2.63% year to date), but based on market analysts’ 12-month average price forecast, the return potential is 154.8% ($7.95).
Management seeks new, reliable technologies and believes the features of its all-electric vehicles can improve society, the environment, and overall quality of life. The EV maker recently produced its first lithium-ion battery pack and will start a gradual production ramp-up once it obtains final certification.
The battery manufacturing facility should give Lion a key market advantage if it becomes fully operational. Its vertical integration capability provides more control of supply, technology advancement, and vehicle integration.
Lion’s full-year 2022 results aren’t out yet, but in the first three quarters of the year, net earnings reached $22.4 million compared to the $71.6 million net loss in the same period in 2021.
Build long-term wealth
The global economy is accelerating the transition towards new energy sources, and governments are investing huge sums in the required infrastructure. You can do your part by investing in green stocks while building long-term wealth at the same time.
