By: Dividend Sensei
Megatrends that are changing the world can make you rich if you focus on safety and quality first, and prudent valuation, and sound risk management always.
Green energy is one of the world’s largest megatrends, with the IEA estimating $128 trillion in investment necessary by 2050 alone.
Today many green energy stocks are in an epic bubble, just as they were in early 2009, after which renewable stocks crashed 90%.
One of these companies is the highest quality renewable energy company, and the best utility in the world. But its 40% overvalued and offering zero risk-adjusted expected real return potential over the next five years.
In contrast, its reasonably valued yieldCo yields 3.4%, is growing twice as fast, and management and analysts expect between 15% and 20% CAGR long-term total returns, which makes it the best high-yield way to cash in on the $128 trillion green energy gold rush.