Investing in Green Bonds with CoPower

I have always been intrigued with investing in renewable energy. A couple of years ago, I looked into installing a rooftop solar system to generate passive income by selling the generated power to the grid during on-peak hours. However, after some researching, it turned out that the initial investment was quite steep (approx. $30,000) and the generated returns were not sizeable enough to warrant it. In addition, there is no way to shelter the income from taxes, so I dropped the idea after some serious consideration.

Equity Space in Renewables

Over the last year or so, I started researching yieldcos – spinoffs from utility companies, which focus on the renewable space. There are plenty of such companies, which provide juicy yield in the market such as Brookfield Renewable Partners (BEP), TransAlta Renewables (RNW.TO), NextEra Energy Partners (NEP), 8Point3 Energy Partners (CAFD) to name a few. Analyzing these companies financially, I concluded that most of them are heavily debt-laden and provide immense risk as far as the principal goes, while searching for that high yield. This is the risk that comes with investing in equities and instead of investing in each individual company, if I was looking for equity investment, I’d rather look for a broader ETF – YieldCo Index ETF (YLCO) is the only one I am aware of that specializes in this space giving exposure to the sector.

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NextEra Energy Dividend Stock Analysis

NextEra Energy Inc. (NEE) through its subsidiaries, generates, transmits, and distributes electric energy in the United States and Canada. The company generates electricity from gas, oil, solar, coal, petroleum coke, nuclear, and wind sources. As of December 31, 2015, it served approximately 9.5 million people.

By far the biggest reason why NextEra Energy attracts investors is due to its exposure to the renewable energy space. It is one of the largest, if not the largest, wind and solar energy producer. As such, the company attracts investments looking to get in on this space early on. The company is usually also included in clean energy indexes such as NYSE Bloomberg Americas Clean Energy Index. The energy industry is changing rapidly as solar and wind continue on their exponential growth trajectory. I shared some thoughts on the changing landscape of the energy sector and how investors need to think and invest in this article.

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Recent Buy – Algonquin Power & Utilities Corp

AQN

A fourth purchase in the month of July! This is turning out to be quite an active month for my portfolio. Whenever I make a purchase, I like to share my buys to document and illustrate how I am building my income stream over the course of months/years. My main goal is simply to keep investing at regular intervals and build my passive income over the course of time. In staying true to tradition, here’s another purchase introducing a new holding to my portfolio.

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