The environment and the economy are really two sides of the same coin. If we cannot sustain the environment, we cannot sustain ourselves.
Wangarĩ Maathai
In 2020, Canadian Prime Minister Justin Trudeau announced the "A Healthy Environment and a Healthy Economy" climate plan to advance both environmental and economic goals through renewable energy for Canadians. With an initial investment estimate of $15 billion, the plan requires collaboration among various stakeholders, including federal and provincial governments, as well as expertise from green and renewable energy companies, to ensure its ongoing success.
Canadian renewable energy stocks
- Reasons for their popularity and their relationships
- Importance of green economy in Canada
- Top green energy stocks in the country
- Benefits of renewable energy stocks investment
Popularity of Renewable & Green Energy Stocks
Renewable and green energy stocks are derived from different types of companies which engage in generating clean energy through wind energy, solar energy, hydroelectricity, geothermal or even biomass energy. Together, they play an integral role in shaping an economic system driven by sustainable development while minimizing environmental impact, known as green economy.
There are several reasons why renewable and green energy stocks have grown increasingly popular globally, including Canada in recent years.
⚡🌱Strong advocation for clean energy
- Transitional shift from fossil fuels reliance to renewable sources to generate electricity
- Enactment of the Canadian Net-Zero Emissions Accountability Act to reduce greenhouse gases emission
- Government support for investments in different renewables across the country
💰📈Favourable economic benefits
- These stocks often offer stable dividend returns for long-term investments
- More businesses and corporations receive incentives from the government for clean energy projects
- Promising technology innovation for the industry — future-proof careers and more profitability
For instance, the growing demand for the electric vehicle (EV) industry in Canada requires ongoing investments to optimize various renewable sources and research expertise in terms of EV charging station infrastructure, installation of solar panels and smart grids, as well as the manufacturing of EV batteries.
In-Demand Jobs for Renewable Energy Stocks & the Future Economy Landscape
One of the main reasons why the green economy is here to stay is because it generates many job opportunities, especially in these four key areas. Regardless if you are interested in working with the operational side of renewables like wind energy projects or the financial side of clean technology, the sky is the limit as this industry continues to expand.
Refer below for a clear comparison and some examples of career opportunities in the green economy.
🏗️Renewable Energy Infrastructure
🔬Research & Development (R&D)
💰Finance and Investment
🌍Environmental and Sustainability
How To Start Investing in Renewable Energy Stocks?
Now that you have reviewed some of the promising reasons for investing in these stocks in the long run, you might want to get down to business to invest, to support sustainability efforts while earning potential revenue at the same time.
The first step to do is identify the key companies and firms which major in different renewables. Search for the corporation name or the ticker symbol before you officially invest in a stock. Some examples include:
The second step is to choose your preferred investing route, be it through individual stocks, exchange-traded funds (ETFs) or environmental, social, and governance (ESG) mutual funds.
The third step is to open a brokerage account where you do the stock trading yourself or hire a professional stockbroker to help you during the process. Another thing to bear in mind here when choosing the right corporations to invest is their strong financial standing and government support as the renewable energy industry is an ongoing transitional industry. Just like sustainability efforts, this requires long-term commitment.
After this step, you can start investing and monitor your portfolio.
If you are investing for the first time, it's best to start with diversified investments such as a mixture of individual stocks and ETFs to minimize financial risk due to the volatility of the market.
The amount you invest depends entirely on your preferences, including your budget and investment timeline.
Important tip: You don't have to just invest in one specific green energy stock.
Once you are more familiar with the portfolio landscape and varied values of the energy stocks, you can even reinvest the dividends gained from your early rounds of investment to increase your earnings when other stocks are doing better.
Best Green Energy Stocks in Canada to Watch Now
With so many renewable energy stocks and companies in the Canadian trading site, how do future investors and analysts decide which are the best investments? Here's a summary of the top reasons why investors choose to finance capital into them and some examples of corporations with a higher investment rate in the country.
1)Market capitalization
The total value of a company’s shares of stock. It can be calculated by multiplying the company's stock currently held by all its shareholders (outstanding shares) by the present share price. It's best to invest in corporations with a higher market cap.
✅ Some examples of company stocks in the Canada (TSX) Energy sector with high market cap include Brookfield Renewable Partners (TSX: BEP.UN, TSX: BEPC, Algonquin Power & Utilities (TSX: AQN), and Northland Power (TSX: NPI).
2)Amount of dividend payment
While there are many stocks worth buying and holding, it's important to review and compare the dividend yield and payout ratio whether it's for short-term investment or long-term investment.
Dividend yield refers to the income that investors earn based on every dollar of their investment while dividend payout ratio refers to the payment investors receive from the company's revenue.
✅ Examples of corporations which offer high dividends to investors are Enbridge(TSX: ENB), TC Energy (TSX: TRP), and TransAlta Renewables (TSX: RNW).
3)Growth potential and future expansion of the company
Another key area that investors will review is the future growth plans of the company, whether it's in the area of technology investment or the establishment of development projects, like building solar-powered farms in different provinces.
✅ Some examples include Northland Power which is set to buy a Canadian offshore wind project in Hecate Strait and Enbridge which steadily invests in natural gas and liquids programs and facilities in Canada and also global locations in America.
Master All Things Renewable and Sustainable With Superprof
By this time, you should realise that these stocks play an integral role in the growth of the economy in Canada. When these firms are backed by substantial capital flows, they allow more investment in expertise across different industries, the establishment of more operational systems at more locations in the country.
Additionally, these could lead to progressive technology advancement, where more can be done to reduce carbon footprint, and greenhouse gas emissions, and generate clean electricity — in alignment with Canada's goal to achieve 100% net-zero electricity by 2035.
Apart from learning about renewable energy stocks in Canada, you can also explore the significance of this industry from an academic lens. Whether you are interested in venturing into renewable energy engineering, sustainable finance or becoming a sustainable energy policymaker, you can always up-skill yourself in this field of study with the help of an experienced tutor at Superprof.
Regardless of your learning level and educational background, you can have a flexible and dynamic learning experience as private tutoring offers you personalized one-to-one lessons according to your learning needs and pace.
For instance, if you are interested in the technological aspect of generating clean electricity, you can request your Superprof tutor to focus on that aspect during the lessons.
To find an experienced and qualified tutor near you, just head to the Superprof Canada homepage to start browsing a selection of tutor profiles.
From there, you can learn about their years of tutoring experience, qualifications, teaching scope, teaching methodology, and hourly rates. You can also opt for in person or online lessons.
That being said, having a firm understanding of this industry will definitely give you an upper hand if you choose to provide capital in renewable energy stocks in the future. Take the first step of discovering a whole new world of sustainability with Superprof today!
Summarize with AI:
Did you like this article? Leave a rating!
Loading...
