Bringing Clarity to a Fuzzy Big Picture
We explain why most geopolitical events will hold less sway over global oil prices in coming years and tackle other big-picture questions.
The Nuts and Bolts of Renewable Energy
As far as many investors are concerned, companies that manufacture the components used in wind- and solar-power installations are the best way to profit from the rising adoption of renewable energy—a dangerous misconception. In many instances, these names are an investor’s worst option.
Fiddling on the Roof: How to Play the Boom in Distributed Solar Power
Pure plays on rooftop solar and energy retailing entail greater the risk; investors looking to build wealth for the long term should focus on names that play in these pools but also boast core businesses that generate reliable streams of cash flow.
An Inconvenient Truth: Clean Energy and Politics
The world can’t run on wind and solar power alone, at least not yet—that’s the inconvenient truth renewable-energy developers rarely acknowledge in their press releases and investor presentations. Here’s our rundown of key policy developments at the federal and state level.
Talkin’ ’bout Green Generation
Yieldcos get all the hype, but generation companies offer superior yields and less demanding valuations. We run through the best and worst names that offer exposure to renewable energy.
From Dusk to Dawn: The Challenges of Intermittent Power
Even in the best of all possible worlds, adoption of rooftop solar power and other intermittent renewable-energy sources raises thorny questions about how to meet demand when the wind doesn’t blow and the sun doesn’t shine.
Solar Power: The Cost Factor
Development of new solar-power capacity is widely expected to drop off sharply after 2016, when investment tax credits for this technology ends and project economics take a turn for the worse. Bullish longer-term forecasts factor in technological advances that may or may not occur.
Electricity Demand: Uncertain Outlook Creates Risks for Renewable Energy
At what rate will US electricity demand grow over the coming years and decades? The outlook varies widely and depends on a wide range of factors, including the extent to which rooftop solar gains traction.
Renewable Energy: Policy Matters
Given the higher costs associated with solar and wind power, government subsidies and mandates to reduce carbon dioxide emissions are critical to sustaining the renewable-energy boom. The outlook grows murky after the next US presidential election.
Going Green
Can investors still make money in renewable energy? High-flying renewable-energy stocks like SunPower Corp (NSDQ: SPWR) and SolarCity Corp (NSDQ: SCTY) routinely garner headlines but also entail significant risks.
Our Portfolio holdings with exposure to renewable-energy have generated an average return of more than 26 percent since last fall.
And we see further upside for all five stocks, fueled in part by the bullish near-term outlook for renewable energy in the US. Our favorites should continue to generate reliable earnings and grow their dividends through acquisitions and organic-growth opportunities.
What sets our favorites apart from SolarCity Corp and other overhyped names?
These companies generate a profit and pay reliable dividends. Even better, our picks have the wherewithal to survive a slowdown in renewable-energy development, thanks to their contract-backed revenue and exposure to other business lines.
Despite these advantages, these stocks still trade at reasonable valuations, making them solid bets for investors looking to build wealth over the long term.
Live Chat with
Elliott and Roger on Nov. 30, 2020
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Producers and Drillers
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLPs and Midstream
Our assessment of every energy-related master limited partnership.
International Coverage
Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Experts
-
Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
-
Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor