Great High-Yielding ESG Stocks, Plus…

Ethical & Sustainable Investing News to Profit By!

The next podcast – after this one – is August 23rd. This episode covers great high-yielding ESG stocks and funds related to renewable energy, plus…

By Ron Robins, MBA

Hello, Ron Robins here. Just a quick note before I start. I’m taking some time off so my next podcast – after this one – will be on August 23rd.

So, welcome to this podcast episode 135 titled “Great High-Yielding ESG Stocks, Plus…” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Remember that you can find a full transcript and links to content – including stock symbols and bonus material – on this episode’s podcast page at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, nor do I receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal to you any personal investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast's webpage for links to the actual articles for more company and stock information. Also, some companies might be covered more than once and there are also 2 article links below that time didn’t allow me to review them here.

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5 High-Yielding Global Renewable Energy Stocks

Besides capital gains, many of you also want income from your ethical investments. So, this article should interest you. It’s titled 5 High-Yielding Global Renewable Energy Stocks and it’s by Quinn Rennell and published on morningstar.com. Here are some points from the article. However, much more information is quoted on this episode's webpage. Quote.

“For this article, we looked at the Morningstar Global Markets Renewable Energy Index… We screened for stocks covered by Morningstar analysts and then sorted them by forward dividend yield to find the five with the highest payouts. All these stocks are undervalued, carrying Morningstar Ratings of 4 or 5 stars.

Top-Yielding Global Renewable Energy Stocks Data as of 7/12/2024.

Here’s a closer look at the five stocks:

1. Proximus PROX

• Fair Value Estimate: EUR 10.50
• Price/Fair Value: 0.73
• Morningstar Uncertainty Rating: Medium
• Economic Moat: Narrow

With a forward dividend yield of 18.23%, this Belgian telecom operator tops our list. Proximus’ stock is down 1.53% this year. Over the last 12 months, it is up 21.14%.

2. Vodafone Group VOD

• Fair Value Estimate: GBP 1.25
• Price/Fair Value: 0.57
• Morningstar Uncertainty Rating: Medium
• Economic Moat: None

European telecom giant Vodafone has the second-highest forward dividend yield in the index, at 10.76%. Vodafone’s stock is up 9.47% in the year to date and 11.16% in the last 12 months.”

3. Engie ENGI

• Fair Value Estimate: EUR 18.00
• Price/Fair Value: 0.79
• Morningstar Uncertainty Rating: Medium
• Economic Moat: None

Engie is a global energy firm that operates Europe’s largest gas pipeline network in France and a global fleet of conventional and renewable power plants. The stock yields 10.1%. The shares are down 2.06% in the year to date but up 4.50% over the last 12 months.

4. Volkswagen VOW3

• Fair Value Estimate: EUR 352.00
• Price/Fair Value: 0.3
• Morningstar Uncertainty Rating: High
• Economic Moat: None

German auto giant Volkswagen has a forward dividend yield of 8.46%. Its stock has risen 3.94% in the year to date. Over the last 12 months, its stock has fallen 5.32%.”

5. Mercedes-Benz Group MBG

• Fair Value Estimate: EUR 117.00
• Price/Fair Value: 0.55
• Morningstar Uncertainty Rating: High
• Economic Moat: Narrow

Rounding out our list is another German auto giant, Mercedes-Benz, with a forward yield of 8.28%. Its stock is up 10.79% so far this year. Over the last 12 months, its stock is down 4.26%.”

End quotes.

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3 Sustainable Investing ETFs for Eco-Conscious Investors

This next article will likely interest most investors. It’s titled 3 Sustainable Investing ETFs for Eco-Conscious Investors and it’s by Shweta Kumari. It was seen on stocknews.com. Here are some quotes.

“1. American Century Sustainable Growth ETF (ESGY - Get Rating)

This fund targets the U.S. public equity markets, focusing on companies across various sectors, including growth and value stocks of large-cap companies, specifically those within the market capitalization range of the Russell 1000 Growth Index. American Century Sustainable Growth ETF emphasizes investing in socially conscious businesses that actively promote environmental responsibility.

The fund has $19.70 million in assets under management (AUM)… American Century Sustainable Growth ETF has an expense ratio of 0.39%, compared to the category average of 0.37%... The fund pays an annual dividend of $0.16, translating to a 0.28% yield at the prevailing price level…

The ETF’s overall A rating equates to a Strong Buy in our proprietary rating system…

2. Nuveen Winslow Large-Cap Growth ESG ETF (NWLG - Get Rating)

The fund invests at least 80% of its net assets in equity securities of U.S. companies with market capitalizations exceeding $4 billion at the time of purchase. It focuses on companies that exhibit sustainable environmental, social, and governance (ESG) characteristics…

The fund has an expense ratio of 0.65%...

Nuveen Winslow Large-Cap Growth ESG ETF has gained 34.7% over the past year and 20.9% over the past six months…

It has an overall rating of B, which equates to Buy in our proprietary rating system.

3. Ishares ESG Aware MSCI USA Growth ETF (EGUS - Get Rating)

It invests in growth stocks of socially conscious companies promoting environmental responsibility and aims to track an index of U.S. large- and mid-cap equities with positive ESG characteristics…

The ETF’s expense ratio is 0.18%...

The fund pays an annual dividend of $0.11, which translates to a 0.27% yield at the current price level…

Ishares ESG Aware MSCI USA Growth ETF has gained 34.9% over the past nine months and 30.9% over the past year…

The fund has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.”

End quotes

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7 Best Green Mutual Funds to Fight Climate Change

This next article features some green US mutual funds. It’s titled 7 Best Green Mutual Funds to Fight Climate Change and is by Jeff Reeves and reviewed by John Divine. It’s found on money.usnews.com. Here are some brief highlights on each of the picks from the article.

“1. Parnassus Core Equity Fund (PRBLX)

• Assets under management: $30.1 billion
• Expense ratio: 0.82%
• Minimum investment: $2,000

The Parnassus Core Equity Fund is the leader among green mutual funds when it comes to assets under management. That said, it's not perfect or particularly flashy. It… is designed to be a core large-cap fund as much as a green mutual fund. That said, investment manager Parnassus has made a name for itself by linking traditional fundamental analysis with an overlay of environmental, social and governance (ESG) factors…

Parnassus Core Equity Fund is well established with the largest asset tally of this group, making it a logical starting place for many investors.

2. Calvert Equity Fund (CSIEX)

• Assets under management: $6.8 billion
• Expense ratio: 0.91%
• Minimum investment: $1,000

Calvert is an investment adviser that prioritizes ESG in its approach, with a 40-year track record of ‘responsible’ investing that takes into account sustainability and environmental factors, among other criteria… The fund is not designed to hold solar stocks or wind turbine manufacturers but rather large-cap domestic stocks that rank highly for their internal programs such as purchasing carbon offsets or building LEED-certified headquarters. Still, if you want to look beyond conventional index funds, then [this fund] is a good green mutual fund to consider.

3. Putnam Sustainable Leaders Fund (PNOPX)

• Assets under management: $6.6 billion
• Expense ratio: 0.92%
• Minimum investment: None

This Putnam offering is another of the largest and most respected sustainable investing options out there. It's also a focused… as it ‘invests in companies that have demonstrated leadership in key sustainability issues that are financially material to their business context,’ according to official documentation from its manager Franklin Templeton. One notable downside that investors should consider before buying in: There are some high front-end costs associated with [the fund], which has a maximum initial charge of 5.75%.

4. Amana Growth Fund (AMAGX)

• Assets under management: $2.8 billion
• Expense ratio: 0.91%
• Minimum investment: $100

Very accessible with just a $100 minimum investment, this Amana Growth fund from Saturna Capital is incredibly unique in that it bills itself as ‘halal’ – or fitting the religious requirements of Islam… That means you won't find businesses that focus on alcohol, pornography or gambling. And interestingly enough, you won't find a penny in finance because strict Islamic law prohibits demanding interest on loans.

5. Fidelity U.S. Sustainability Index Fund (FITLX)

• Assets under management: $4.2 billion
• Expense ratio: 0.11%
• Minimum investment: None

A cost-effective option, Fidelity U.S. Sustainability Index Fund… is a sustainability-focused mutual fund that charges just a fraction of what the other funds on this list charge. It is also the most wide-ranging of the green mutual funds so far, with 285 total stocks in its portfolio. That doesn't mean it's all that more diversified, however, as it is weighted by size – so mega-cap stocks like Microsoft (MSFT) and Nvidia Corp. (NVDA) dominate the portfolio.

6. Calvert Small-Cap Fund (CCVAX)

• Assets under management: $2.9 billion
• Expense ratio: 1.19%
• Minimum investment: $1,000

Calvert Small-Cap Fund is definitely the most expensive fund on this list from an annual fee perspective. That's in part because mutual funds generally have higher costs than their exchange-traded cousins, but it's also because this is a boutique offering with an active approach.

7. Parnassus Mid Cap Fund (PARMX)

• Assets under management: $3 billion
• Expense ratio: 0.96%
• Minimum investment: $2,000

With a focus on mid-sized corporations and an average market value of about $30 billion, this investment vehicle offers a way to invest sustainably in established firms but not necessarily duplicate positions you might own in a traditional large-cap fund.

End quotes.

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3 Renewable Energy Stocks to Buy at 52-Week Lows in July

As we know renewable energy stocks are frequently having a rough time this year. However, buying low and selling high is generally the best approach when buying investments. So, for those of you who favor this approach and are interested in renewable energy stocks, this article is for you. It’s titled 3 Renewable Energy Stocks to Buy at 52-Week Lows in July by InvestorPlace and seen on markets.businessinsider.com. Here are some quotes.

“While buying stocks that are at their 52-week lows is risky, on the other hand, it could present a massive upside opportunity. Thus, it is important for investors to understand exactly why the stock is down before jumping into buying. For investors looking for cheap green energy, below are the three best renewable energy stocks to buy at an all-time low in July.

1. Plug Power (NASDAQ:PLUG)

specializes in hydrogen fuel systems which are used to replace traditional batteries powered by electricity…

Currently, its stock price is almost at an all time low – it dipped to $3.07 per share compared to $12.76 per share just a year ago…

The company recently finished deploying 13 hydrogen refueling stations (HRS) in Europe, making Plug Power the largest owner of hydrogen refueling stations with over 250 stations globally.

2. Array Technologies (NASDAQ: ARRY)

The stock is down -41.14% year to date…

As the largest solar tracker company globally, Array Technologies offers various services including the DuraTrack system, which is a single-axis tracker technology that helps maximize PV panel energy production.

Recently, Citigroup upgraded the average one-year price target for Array Technologies to $19.52 per share…

3. Shoals (NASDAQ:SHLS)

is the largest provider of electrical balance of systems (EBOS) solutions for utility-scale solar…

Even though Shoals stock is down more than 70% year over year as of writing, Shoals has reasons to make investors feel confident about buying [it].”

End quotes.

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Other Honorable Mentions – not in any order.

1) Title: 5 Alternative Energy Stocks to Buy Amid Solid Industry Rally on finance.yahoo.com. By Nalak Das.

2) Title: Top 20 Halal Stocks to Invest In on discoveroptions.com. By Gloria.

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Ending Comment

Well, these are my top news stories with their stock and fund tips for this podcast titled: “Great High-Yielding ESG Stocks, Plus…”

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Thank you for listening.

Now I’m taking some time off so my next podcast will be August 23rd.

I’ll talk to you then!

Bye for now.

© 2024 Ron Robins, Investing for the Soul