Todd M. Walker and Craig R. Walker
“OMG, where did my interest go?” If that sounds like you recently as you looked at your bank, CD, money market, bond or fixed annuity account statements, you’re hardly alone. Due to governments around the globe lowering interest rates in order to stimulate economies during Covid-19, interest payments are at all-time lows – in many cases barely above zero.
While this may be great for businesses and borrowers, for those who depend on regular interest income to maintain their lifestyle, it can be a real hardship. In fact, with inflation now on the rise such low-rate interest accounts can actually be losing you money. For example, if the annual inflation rate grows to 5% a year, by the time a two-year CD paying 0.50% annually matures, your money would be worth approximately 9.0% less in spending power. And who knows how long this might last with all the Covid variants out there? But there is one reliable, socially-responsible place you can turn today for higher income on your money.
Earn High Investment Income from Clean Energy Power Producers.
You’re probably familiar with dividend-paying stocks – relied upon by income investors for decades — but as a believer in clean energy you may have shied away from the kind of companies that traditionally pay larger dividends, such as big oil and pipelines, or fossil-fuel-burning utilities.
But there is a lesser-known market niche that actually pays high dividends you can believe in. It’s the growing number of clean energy power producers – think of them as clean power utilities.
These companies own large installations of hydro, wind, utility-scale solar, distributed generation, battery storage and other renewable technologies that can generate annual dividends for shareholders of 3-5% or more.
Some good examples would be:
Brookfield Renewable Corp (symbol BEPC) – current yield* 3.55%
Innergex Renewable Energy (INGXF) – current yield* 4.10%
Plus, there are mutual funds and exchange traded funds such as New Alternatives Fund (NALFX) and Global X Renewable Energy Producers (RNRG) that specialize in this area.
Some Tips Before Proceeding
Like all stocks and stock funds, dividend payers will rise and fall with the markets and past performance is no guarantee of future results. Also, unlike bank accounts, they are not FDIC insured and their dividends can be reduced or suspended at any time by management.
Like all stock investments, it’s important to diversify your holdings among a portfolio of companies and types of securities, including bonds and bank/insurance products, to help reduce risk over different market conditions.
You can invest in dividend-paying stocks by opening an individual brokerage account with such firms as Fidelity Investments, Schwab, Interactive Brokers or many others, or if you do not have the time or experience, consider retaining a qualified Financial Advisor who specializes in socially responsible investing.
If you are producing your own power now, you know what a great feeling that is. Now enjoy the same feeling on your portfolio income! People today have to be more creative in the search for higher investment income, and what better for believers in renewable energy than higher investment income from reliable clean power producers.
* As of 1/18/2022
Todd and Craig Walker are Financial Advisors at Greenvest®, a Vermont-based personal asset management firm specializing in socially responsible investing since 2004 and a certified B Corporation®. www.greenvest.eco
Greenvest and Vanderbilt Financial Group are separate and unaffiliated entities. Vanderbilt Financial Group is the marketing name for Vanderbilt Securities, LLC and its affiliates. Securities offered through Vanderbilt Securities, LLC. Member FINRA, SIPC. Registered with MSRB. Clearing agent: Fidelity Clearing & Custody Solutions. Advisory Services offered through Vanderbilt Advisory Services. Clearing agent: Fidelity Clearing & Custody Solutions. Insurance Services offered through Vanderbilt Insurance and other agencies. Regional Supervising Office: 55 Main St., Suite 415, Newmarket, NH 03857 • 603-659-7626. For additional information on services, disclosures, fees, and conflicts of interest, please visit www.vanderbiltfg.com/disclosures
Information contained from sources believed to be reliable, but we cannot guarantee its accuracy or completeness. Past performance is not a guarantee of future results.
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