Investing In Renewable Energy Stocks: Performance of Yield Cos in US

Abstract

Purpose – Renewable Energy company stocks is gaining taction for yielding lucrative returns in covid and post covid world. Moreover, there has been a lot of talk about ESG investing and its potential benefits to the future economy. Most of the top companies in terms of market capitalization often use yield cos to shift the risks and gain good returns.The purpose of the paper is to focus on how the renewable energy companies having yield cos operate and what makes their structure unique for investment. Design/methodology/approach – The stock data for the top 5 renewable companies with yield cos are taken from Yahoo Finance, Cap IQ for the years 2010 to 2023. Stock price analysis is carried out to determine how the stocks performed compared to S&P500 index. Findings – We could see that the yield co structure for the renewable companies remains an attractive and viable mechanism for renewable energy projects and the companies. The renewable companies most of the time bet the market index suggesting that the stocks have significant potential in the future. Originality/value – The paper primarily focuses on the renewable energy companies which follow the yield co structure. First, the historic trend from 2010 has been analyzed to determine how the companies evolved over time. Second, correlation analysis has been performed with the index to determine how it compared against the market. Third, detailed analysis has been performed on the impact of yield cos and its potential benefits.