THE Biden presidency will boost energy energy stocks (solar, wind, fuel cell) especially if it extends the solar investment tax credit for residential and commercial property installations. ETF stands for Exchange Traded Funds that are similar to Mutual Funds but trade like ordinary stocks. This is the first of four articles on clean energy.
ALPS Clean Energy (ACES):
• ACES invests in a benchmark called Clean Energy Index.
• Its three top holdings are Tesla, Cree, and Enphase Energy.
• President Biden is at the forefront of clean energy from solar, wind and fuel cells.
• Investors, especially millennials, invest in companies that contribute to a sustainable future and reduce their carbon footprint
Bloom Energy (BE):
• Bloom Energy makes on-site generation systems utilizing fuel cells.
• The company’s customers represent diverse industries of health care, banking, media and communication, food and beverage, technology, and utilities, among others.
Brookfield Renewable Partners (BEP):
• Brookfield is one of the world’s largest publicly traded renewable energy companies.
• It operates a global, multi-technology platform – hydroelectric, wind, and solar energy generation facilities, as well as energy storage assets.
• It sells power under long-term, fixed-rate power purchase agreements.
• Those contracts provide it with stable cash flow which it uses to pay attractive dividends.
• The company also boasts a strong balance sheet with one of the highest investment-grade bond ratings in the renewable energy sector, along with lots of liquidity (cash and available credit) to help finance growth.
• It has the financial capacity to expand its renewable energy portfolio with a focus on solar energy.
• This expansion should produce robust cash flow growth to support yearly increases in its dividend.
• I am long on Brookfield and expect it to produce strong investment returns in the coming years.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].
