The green recovery! I’d buy these renewable energy stocks to profit

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Image source: Getty Images Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Boris Johnson is planning a green recovery for the UK economy. To this end, the government is planning to invest £12bn in renewable energy initiatives over the next few years. The prime minister also wants to turn the country into the Saudi Arabia of wind by 2030. Estimates suggest this could cost as much as £50bn. That might appear to be an extraordinary sum, but a significant auction of wind energy rights next year could attract up to £20bn of investment from the private sector alone. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…And it’s not just the UK that is investing heavily in renewable energy. Other countries are spending tens of billions on new green energy projects too. With that being the case, I’m currently looking for renewable energy stocks that may be able to profit from this theme. Renewable energy investmentsOne organisation leading the charge is energy group SSE (LSE: SSE). Last week, the company set out plans to triple its renewable energy generation by 2030.It is already planning the world’s largest offshore wind farm. The 3.2GW Dogger Bank offshore wind farm could be operational by 2026. In total, the group is planning to invest £7.5bn in renewable energy projects in the near term. A chunk of this funding will come from asset sales.Management is planning to flog approximately £3bn of assets over the next few years. This will help reposition the business away from its traditional footprints and towards renewable energy. Based on the shift, I’m optimistic about the company’s outlook. Green energy is a booming business, and costs are significantly lower. This should help the enterprise’s profit margins and growth potential. And as the business perseveres with its growth objectives, investors will be paid to wait. The stock currently supports a dividend yield of 6%.Wind incomeAnother renewable energy income play I’ve been taking a closer look at recently is Greencoat UK Wind (LSE: UKW). This company owns and operates a selection of wind farms throughout the UK. These farms provide a steady stream of income for the business. Management reinvests a portion of the income. The group also returns a large chunk of cash to investors every year. It recently declared a 1.8p per share dividend for the quarter to the end of September. That suggests an annualised dividend of 7.2p per share, or a dividend yield of 5.5% on the current stock price. When it comes to growth, the firm has lots of options. Over the past few years, the company has built a £2.2bn portfolio of wind farms around the UK. It’s used capital from existing assets, debt and cash from investors to build this renewable energy bank of assets. With a strong pipeline of new wind farms under construction around the country, Greencoat should have lots of options to buy new assets in future. As such, I think this stock has the potential to provide investors like me with steady dividend growth for years to come.  See all posts by Rupert Hargreaves Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Sharescenter_img Rupert Hargreaves | Sunday, 22nd November, 2020 | More on: SSE UKW Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Greencoat UK Wind. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. The green recovery! I’d buy these renewable energy stocks to profit “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Addresslast_img read more