Alert: Your TFSA Needs Green Energy
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Your tax-free savings account (TFSA) was designed to help you accumulate wealth over time without tax consequences. If your dividends and capital gains in the account are tax-free, the best strategy is to focus on stable growth opportunities that could play out across decades.
The most obvious sector to focus on renewable or green energy. The costs of producing solar, wind or hydro electricity have dropped below traditional sources such as coal and oil in recent years. Meanwhile, there’s an emerging wave of regulations mandating green energy consumption across the globe. In short, this is an obvious sector for TFSA investors to watch.
BW Businessworld
Germany’s Transition To Renewables, What Can India Pick Up?
A developing economy like India, though mainly agriculture based, can take lessons from success as well as failures of other countries, while executing its own energy agenda.
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India is sprinting towards renewable energy as bankable source for the near future. As per a paper published by NITI Ayog, India aims to achieve 175 gigawatts (GW) of its energy from renewables by 2022. Prime Minister, Narendra Modi reaffirmed India’s goal to achieve this target during U.N. New York Climate Week in September 2020. To achieve this goal, India must tread its paths carefully and take all the right steps.
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As tech stocks hogged the limelight in 2020, the impressive performance of renewable energy stocks went largely unnoticed. The extensive focus on the reduction of carbon emissions is leading to increased adoption of renewable energy, which is driving the stocks of the pure-play renewable energy companies higher. Moreover, significant planned capital investment into renewables should further support the uptrend.
Besides the appreciation in stock price, renewable energy companies are known for their robust dividend payouts, thanks to their diversified asset base and highly contracted business.
With the growing contribution of renewables in the global energy demand, the outlook for companies operating in this space looks strong. So, let’s focus on two top renewable energy stocks that could continue to deliver strong returns and deliver higher dividends in the coming years.