Okay so I was doing some research into the #greenenergy sector for hours and hours yesterday. I don't enjoy being ignorant so I'm trying to learn as much as I can, and this is one corner of the market I don't know enough about.
I just want to share in to what I've been reading about and what I plan to invest in within the green-energy sector and why.
I would also like to preface this with the fact I'm here to make #longtermgains ; I don't have the time, between my career and my hobbies, to be buying and selling all day long. With most of the market still down from covid, and being in a recession, I'm trying to invest now while I effectively have a "coupon" for stocks. Everything below is something I plan to hold so that I can see some great growth into the future.
1) NextEra Energy $NEE : Wow looking at this stock I sure wish I'd have known about this sooner (and gotten into investing sooner). I'm putting what I'd consider a "very large" sum (for my wallet) into this stock.
This company is showing endless growth. I intend to hold onto NextEra well into the future, so consider this a very long-term investment. Looking at their position in the space, they are poised to continue significant growth, and have plans to increase their earnings per share over the coming years with what appears to be a very sturdy foundation and plan to meet those goals. They are rapidly building out their energy production quarter after quarter and seem to only be accelerating, yet with well-managed and attainable goals in mind. While different articles show different numbers for growth predictions, all of them are nice and fat so if even the minimum is met I can still make out like a bandit for years to come.
2) Enphase Energy $ENPH : If 25-year-old me would have been wiser...*ugh* Could have been a multi-millionaire had I been investing properly years ago and happened upon this stock. ~+30,000% growth over the last 5 years and still growing!?
This must be what it feels like when my dad would say "if only I'd have invested in that Apple (or insert other now-massive tech company)."
$ENPH is in the market with their inverter tech, batteries, and more that solar needs to work on a power grid; they also design and produce all of these components. It's not a dividend stock but with the growth I hope to see it's one I want to hold on to for about a year to see what position it takes; if at that time I'm not seeing the growth I want out of it then so be it. Probably won't see any loss here (please, world, don't unleash Covid 2.0), but I'm not a mystic.
========FOREIGN INVESTING========
I don't know enough about foreign investing. See my concerns following the rest of this list.
3) Brookefield Renewable Partners $BEP : $BEP has a good looking future. They have an outlook to develop upwards of 69 gigawatts of projects (nice!) with planned capital investments to meet their goals. $BEP is an already-huge clean-energy company and has a good track record over past decades which makes me feel more comfortable with this investment. Their portfolio is well diversified within itself as they tap into various fields of green energy across multiple large countries/the EU with long-term contracts.
Plus, it's a dividend stock! At 3.32% yield! Their shares are pretty cheap overall so I can see myself buying a "large" position here and holding onto it for a nice, comfortable, long-term investment that I can keep growing, or to help grow my other investments.
4) SolarEdge Technologies $SEDG : If only 25-year-old me...Anyway, better late than never? SEDG may not be a dividend stock, but their growth is nearly incomparable. With so much work going into green energy development today, SEDG is out here with the inverter tech needed to make solar power work on the grid, and they're continuing to try and improve their designs to help drive the space forward into the future.
Because this isn't a dividend stock, I tend not to invest AS heavily, or as easily into positions like these because I am searching for my gains to gain so they can gain gains.
If I do invest here, this will be a "medium-large" investment for me that I plan to hold onto for at least a year I imagine. If, at that point, I don't see the future growth I'd anticipate from such a leading company in a massively growing market then I'll sell it off and take what I get; can't imagine I'd end up taking a loss here, but I can't see the future.
5) Equinor $EQNR : Okay, now this is a big "MAYBE" on my list for many reasons, and I'm not actually investing into it right now but wanted to bring it to everyone's attention anyway, simply because I wish to share what I've learned.
This is actually a fossil fuel company, though they've expanded into renewables as well. With Russia being Russia, Equinor may have some skin in the game when it comes to providing more energy to the EU. I'd like to see this company expand further into the still-emerging green-energy market while having the "safety net" of fossil fuel energy sales as their backbone, and that kind of seems like their plan.
Am I right about any of this? I'm quite uncertain, to be honest.
I don't understand much about how investing in #foreign companies works, and trying to read up on it is still confusing to me. It sounds like taxes on dividends and/or realized gains are different when you invest in foreign companies? There's mention of having to fill out different forms come tax time and making sure you do everything right, and that you can claim deductibles one way or another because...international agreements?
It sounds messy, and messy makes me too anxious to deal with it right now until I understand it better.
If anyone knows more about this topic and can simplify it, PLEASE share. I'd love to actually understand it! Once I do, these foreign investment are top of my list.
Heck, maybe I'm already going to have to deal with it because of my investment in $WDIV ? I wasn't sure because, sure the index includes international companies but the management of it is local, right? Like I said, massively lacking in knowledge and understanding with regards to this part of investing. Maybe I'm worried about nothing, and making money is making money and my tax guy will figure it all out for me when I hand him my documents next year. Again, please share what you know, if you're willing! I'd love to learn!
Disclaimer:
Please don't take anything I say as "advice" as I'm just here #learning like many others on this platform. I'm doing pretty good for myself overall and have a lot of stability in my personal life such that I don't really lose out much should any of these investments be mistakes. Please only invest what you're personally willing to part with should the worst happen; we're not playing high-stakes poker, we're trying to build ourselves better futures. I, for one, would like to do that by trying to achieve financial AND environmental security.
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