Betting for this trillion dollar trend

Recall the stupid call that the world will end in 12 years by the rising Dem star AOC? Although it is an utterly dumb brain-dead stupidity, she has gained a lot of attention for her senseless  Green New Deal! If you don’t know yet, she is calling to ban the milking cow business as the cows’ fart will hurt the environment. She is even questioning if it is moral to have children for human beings as it is not a good thing for the global environment. I genuinely hope she will keep her high morality and will not have her children at all in her life, as it is better to have less children to be poisoned for such kind of ridiculous nonsense!!

But regardless how laughable the Green New Deal is, one thing she is aggressively promoting is indeed gaining momentum. This is nothing to do with the dumb Green Plan of course as it has already started for many years but the trend is continuing and will only grow bigger and faster. I’m talking about the renewable energy (RE). Per International Renewable Energy Agency, the cumulative expenses in renewable energy globally in the next few decades can amount to $100 Trillion. While the exact number is not important, it is surely a massive megatrend from the investment perspective that we should not ignore! You may have also heard that Trump and Democrats have agreed to pursue $2 Trillion Infrastructure Plan for the next decade to upgrade the very crippled US infrastructure. Although this is not a directly related to the renewable energy, I’m pretty sure a lot of infrastructure projects will involve some RE components and therefore this trillion dollar IP will also substantially benefit the RE sector, although indirectly!

There are tons of different companies involved in the RE sector and it is not an easy task for general investors like you and me to pick out good among bad. Of course, you can simply go with the whole sector by putting money into RE sector ETFs but I think there is a better way to invest in it. There is a company called Hannon Armstrong Sustainable Infrastructure Capital (HASI), which provides funds to RE projects that are usually in a long term contract basis. Here is the brief summary of this company:

HASI provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include energy efficiency projects that reduce a building's or facility's energy usage or cost through the use of solar generation, including heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. The company also focuses in the areas of grid connected projects that deploy cleaner energy sources, such as solar and wind to generate power; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and seismic retrofits and other projects.

The thing I like HASI most is that this is a company with a very diversified exposure to RE, i.e. a safer bet for this long term megatrend. Even better, HASI is structured as a REIT and as such, it pays a high dividend yield for investors. At its current price around $26, its dividend yield is as high as 5%! So you are basically rewarded by its income sharing when you are riding on this trillion dollar mega RE trend. This high income potential can greatly buffer the inevitable market volatility and will help you stay on the trend as long as possible!