Countries around the globe are trying to take the necessary steps to make our world a cleaner, and greener place. Leaders are talking about the impact of climate change. Several countries have laid out policies for the next decade. And while companies engaged in the energy sector didn’t have a good year they are ready for growth. Energy companies are significantly contributing towards the betterment of society. And now is the right time to boost your investment portfolio with these seven clean energy stocks for a cleaner and more profitable future.
Clean Energy Stocks: Li Auto (LI)
Electric vehicle makers are contributing towards building a cleaner and greener future. While the demand for EVs seems to have dropped, one company is firing on all cylinders. Li Auto (NASDAQ:LI) is one EV stock that is worth an addition to your portfolio and it will not disappoint.
The company has reported impressive delivery numbers throughout the year and ended the third quarter with 105,108 vehicle deliveries, a 296% year-over-year rise. Starting next year, the company will launch its fully electric vehicle which already has 10,000 pre-orders. This shows the popularity of Li Auto in China.
The company has strong financials and has managed to beat expectations in the past two quarters. Trading at $35 today, the stock is up 69% year to date but still below the 52-week high of $47. Li’s momentum shows no signs of slowing and this is one stock to buy and hold throughout 2024.
BYD Co. (BYDDF)
One of the biggest players in the Electric vehicle industry, BYD (OTCMKTS:BYDDF) is giving solid competition to Tesla (NASDAQ:TSLA) and it could beat Tesla’s delivery numbers in the coming months. The company has an extensive network and a global presence which ensures steady growth in delivery numbers. BYD Company is also the second largest battery maker in the world.
It has delivered 2,079,638 vehicles a year to date, which is a 43% increase from the previous year. Driven by the higher demand, the company’s profits also increased by 142% year over year in the first nine months of 2023. Its Thailand production unit will commence in 2024 and it also plans to build a new plant in Mexico.
BYD has its eyes set on the global market and as the EV industry expands, there is a lot more to come. Exchanging hands for $27 today, the stock is highly undervalued right now.
Clean Energy Stocks: Enterprise Products Partners (EPD)
One big reason to invest in Enterprise Products Partners (NYSE:EPD) is its high dividend yield of 7.6%. Based in North America, this company has an impressive portfolio of assets that ensure steady cash flow and are considered to be highly reliable.
The company has managed to increase the dividend payouts for the past 25 years consecutively. It has a stable balance sheet with enough cash flow and is one of the biggest energy companies in the industry today. The company makes money by charging fees from the customers to use its assets and this ensures steady revenues.
I believe the company will be able to sustain the dividends in the coming years and you must buy the stock before it soars higher. It is exchanging hands for $26.25 today and is almost at the 52-week high, but this is one stock that will keep rewarding you.
NextEra Energy (NEE)
The higher interest rates and concerns about funding are giving a tough time to NextEra Energy (NYSE:NEE), and while the stock is down, it is not out. It is a blend of both worlds- a utility company and a renewable energy company. It is the largest electric utility in the US and is involved in renewable energy sources like solar and wind.
The one reason it is a safe bet is its regulated business, Florida Power & Light which keeps generating steady income over the years, and it also has a significant portfolio of renewable assets. Trading at $59, the stock is down 28% year to date and is much lower than the 52-week high of $88. You can buy the stock near its three-year low right now.
This clean energy company has a long way to go and will keep rewarding you through steady dividends. It enjoys a dividend yield of 3.12% and the management expects to achieve 10% dividend growth through 2024.
Clean Energy Stocks: Enbridge (ENB)
Enbridge (NYSE:ENB) is a no-brainer stock when it comes to green energy stocks. The energy company is based in North America and has recently shifted towards renewable energy. One solid reason to own the stock is the company’s steady dividend history. It has been paying dividends for the past 28 years and I do not think there will be any changes to this.
Earlier, the company was heavily dependent on oil and generated most of its revenue through oil pipelines, but it has diversified now. It currently generates revenue from clean energy and natural gas. Its financials are proof of the company’s strength. In the recent quarter, it saw a jump from $2.1 billion in cash flow to $3.1 billion year over year.
It shows that the company has enough liquidity to keep rewarding the shareholders. To expand its presence in the clean energy sector, the company is planning to purchase three natural gas utilities in 2024. Trading at $34 today, the stock is a big buy for the passive income.
SolarEdge Technologies (SEDG)
The demand for solar energy has been on the rise and this gave a boost to SolarEdge Technologies (NASDAQ:SEDG). It provides inverters for residential and commercial properties and offers smart energy power optimizers that work for solar systems.
The company saw impressive growth earlier this year, but the earnings weren’t as impressive. It saw a 13% year-over-year drop in revenue due to the slowing demand in Europe. It also lost $61 million in the quarter due to the delay in European backlogs.
But I believe this could be temporary. The long-term demand for solar energy will remain high, and the stock is a buy and hold for patient investors. Exchanging hands at $80 today, the stock is down 71% year to date, and this dip is a good chance to buy. It is much lower than the 52-week high of $345, but its long-term potential is massive.
First Solar (FSLR)
One of the early players and game changers in the solar industry segment is First Solar (NASDAQ:FSLR). It is one of the clean energy stocks with massive growth potential. While this year has been rough for the company, its total bookings backlog is proof that the company has enough orders to keep going.
The backlog of 81.8GW will last until 2030 and it also has opportunities for booking another 65.9GW. It plans to begin operations at the Louisiana and Alabama factories in the next two years. These facilities will increase production significantly and it could be reflected in the bottom line.
The company is also benefitting from the subsidiaries and it has a strong balance sheet. For the recent quarter, the net income came in at $2.50 and beat expectations. Trading at $144 today, down 25% in the past six months, the stock might look expensive but it is worth your money.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
