11/27/17: Power Swap
We’ve added a new power play to the International Portfolio.
Focus List and Portfolio Changes
The recent pullback in midstream master limited partnerships creates buying opportunities. We’ve also added a power company to our Focus List and the International Portfolio.
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.
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.
NextEra Energy Partners LP: Plenty of Steak, But Priced for Sizzle
NextEra Energy Partners is the first pure play on wind and solar power to be structured as a MLP. And with the stock up 37 percent since its June 26 IPO, the issue has proved popular with investors.
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Live Chat with
Elliott and Roger on Nov. 29, 2018
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Coverage Universe
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLP Ratings
Our assessment of every energy-related master limited partnership.
International Coverage Universe
Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Experts
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Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor