Every year since 2008, I've published a list of ten (or eleven in 2012) clean energy stocks I expect to do well over the coming year. The list is intended as a model portfolio which could be used by a small investor looking to avoid the relatively high costs of clean energy mutual funds, most of which have expense ratios around 2%, in addition to the trading costs they incur with fairly high turnover ratios.
Even if the world economy worsens or these stocks remain out of favor, Waterfurnace, PFB, Accell, and Waste Management all have high yields (averaging 5.65%) which should provide return and protection against large price declines even if the market tanks. All except Lime, Finavera, and Alterra have profitable operations which should protect them even if the world economy worsens.That said, the goal of this portfolio is to produce a return that is significantly better than my chosen clean energy benchmark, PBW. If clean energy has another horrible year like 2008 or 2011, we're liable to see a negative return from this portfolio as well. On the other hand, PBW has recently reversed it former trend, and significantly outperformed the broad market in December. Clean energy stock prices are currently so depressed that I would not be surprised if clean energy stocks gain in 2013 even if the broader stock market falls.
See also: Six More Clean Energy Stocks for 2013
DISCLAIMER: Past performance is not a guarantee or a reliable indicator of future results. This article contains the current opinions of the author and such opinions are subject to change without notice. This article has been distributed for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
This article was originally published on AltEnergy Stocks and was republished with permission.
Lead image: Stock concept via Shutterstock
To add your comments you must sign-in or create a free account.