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

Lots of revenue from Florida, impacted by Hurricane Ian. Put lots of electricity lines underground, which has sped up getting things back online. Valuation more elevated than Canadian names. Well run, good renewables presence.

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3.-Fortis Inc. (FTS-T)

Fortis Inc. (FTS-T) — Stockchase

Less regulatory risk than EMA. Still a negative total return over the last 12 months. Yield is 4.2%.

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

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

Believes shares are turning around. Looking for higher prices.

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5.-Xebec Adsorptions Inc (XBC-X)

Xebec Adsorptions Inc (XBC-T) — Stockchase

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Continues to expand globally via partnerships. RNG and hydrogen tailwinds. Lower valuation risk.

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