I've been creating model portfolio of clean energy stocks for 2008. At the beginning it was just a list, but in 2009 I started track it as a model portfolio for a small stockmarket investor. Pretty miserable yields had measured with the exception of last year, clean energy, the shares specified in my sector benchmark at the beginning of each year. I have the power shares WilderHill clean energy ETF (PBW) for all but the first couple of years used. I have before, still with PBW a good measure continues, because it is the most common held sector ETF, and so as the average clean energy investors in the course of the year could do.
As you can see from the table below, more than 12 percent returned 2013 the first year that my model portfolio were not his benchmark... and also the first year of this benchmark test. Last year returned PBW 60 percent 2007 was the year before I started to publish these portfolios.
The diagram shows the following after three and five years (projected). Every three years, are negative for both the benchmark and a little less so for my model portfolios. Under the five-year bond yields is that the model portfolios from 2009 to 2013, even slightly positive on an average annual return of 3 percent per year.
2013 in retrospect
Despite the year 2013 I was disappointed a 25 percent return, that my model portfolio stellar is the benchmark not voted. While the portfolio two shares, which have more than doubled, the portfolio yields were clearly reduces the absorption of calcium (NASD: LIME) and Finavera wind energy (TSX-V: FVR, OTC: FNVRF). These two, along with the worst alternative select RAM power (TSX: RPG, OTC: RAMPF all suffered from specific business setbacks had a large negative impact on its shares due to their small size and lack of internal sources of funding). As I wrote earlier this month, I intend to avoid such companies in this list in the future.
The portfolio was also used by the problems of accounting at Maxwell technologies (NASD: MXWL) held back. While I readers for sale by Maxwell on my blog Forbes with only 2 percent loss at the beginning of March warned, I make the model portfolio as a buying investor would hold and only Maxwell, early April, moved when it was 39 per cent, replacing them with Ameresco (NASD: AMRC). Both stocks later reimbursed, but the lazy swap was a drag on the portfolio performance. Had I swapped the two stocks on March 13, publication of my article on Maxwell, who would be Maxwell/Ameresco combination have won on the day after, 17 percent instead of falling 19 percent and the portfolio as a whole would rise 29 percent instead of 25 percent.
Ten clean energy shares for 2014
My list for 2014 contains a large number of hold overs from the 2013 list, which was not involved in the General growth of the clean energy stocks despite strong views. This year, I present to you my picks in the approximate order of risk, from the fairly safe income shares up to a few deep-value stocks. I also have a high goal includes, two course objectives and a low target to reflect what I would expect, in the worst case happen if everything as planned. Probably far more than half of these stocks between the low and high goals at the end of the year 2014 sink is.
1 Hannon Armstrong sustainable infrastructure (NYSE: HAJ).
Current price: $13.85. Annual yield: 6.4%. Low target: $13. Aim high: $16.
I have extensively sustainable infrastructure REIT since its IPO in the spring of 2013 written Hannon Armstrong. I expect quarterly despite its recent run-up on the news of the $0.22 dividend, the current yield and expected more dividend increases in 2014 will prevent that the share price fall and probably with more appreciation.
2Nd PFB Corporation (TSX: PFB, OTC: PFBOF).
Current price: C$ 4.85. Annual returns: 4.9%. Low target: C$ 4. Aim high: C$ 6.
After 2013, when it paid C$ 1.24 in dividends, but nearly as much stock price gave back, Green Builder PFB returned to the list. This stock is very illiquid, so it's best just to buy or sell property with limit orders. In addition to its distribution have the company buy back active since early December, was.
3. Capstone infrastructure Corp. (TSX: CSE.) OTC: MCQPF).
Current price: C$ 3.55. Annual yield: 8.5%. Low target: C$ 3. Aim high: C$ 5.
Keystone is a Canadian power generators, which are currently at a discount due to lengthy negotiations with the Ontario Power Authority about the renewable power purchase agreement for its biggest plant, a gas CHP plant in Cardinal, Ontario sold. The new Treaty is unlikely, Capstone are favored, but the stock market seems already essentially dividend cut, prices are also a "not terrible" contract the stock rebound could cause. If this is not the case, the current C$ 0.075 quarterly dividend should a majority of the losses even major pessimists when captured.
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