Top 5 Renewable Energy Stocks to Watch in 2021

Melisa R. H. Posted On January 4, 2021

The global transition to clean power and growing demand for renewable energy has been a tailwind for this sector. With the ESG movement, more and more renewable energy companies are seeing large investments from funds and are awarded higher multiples. The Biden presidency is also expected to be a tailwind with infrastructure spending and investments in renewable energy.

Many renewable energy stocks operate in regulated markets and offer stable returns on investments. They usually pay a dividend that should increase over time.

Here are the top 5 renewable energy stocks to watch in 2021:

1.-Enel Societa Per Azioni (EN-N)

Enel Societa Per Azioni (ENLAY-OTC) — Stockchase

Europe's biggest utility. His top pick for global transition to clean power. At the forefront of the transition. Based in Italy, operates across multiple geographies. New green deal should provide a lot of funding, of which Enel should be the prime beneficiary. Nice entry point here. Yield is 4.21%. (Analysts’ price target is $9.13)

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2.-NexEra Energy (NEE-N)

NextEra Energy (NEE-N) — Stockchase

It's a fantastic forward-thinking utility that does a lot of business with charging. It is still a buy.

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3.-Fortis Inc. (FTS-T)

Fortis Inc. (FTS-T) — Stockchase

It has risen up to its intrinsic value so not much left in the stock.

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4.-Algonquin Power & Utilities Corp(AQN-T)

Algonquin Power & Utilities Corp (AQN-T) — Stockchase

(A Top Pick Jun 11/21, Down 7%) Higher interest rates will benefit the company. Believes renewables will continue to grow. Still believes in strength of company and will continue to hold.

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5.-Xebec Adsorptions Inc (XBC-X)

Xebec Adsorptions Inc (XBC-T) — Stockchase

Cheap. Recent quarter was a disaster. He's monitoring it. Regulatory change on renewable natural gas will be a strong tailwind for quite some time. Challenging environment now. Supply chain issues have increased costs. Management knows what they're doing.

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