Three Wind Power Stocks to Watch in 2021

November 20, 2020
542 Views

The alternative energy market is strengthening from year to year. In 2021, wind power is likely to be one of the biggest winners. Incoming President Joe Biden has committed to programs that would see more renewable energy deployments for federal buildings and grid-generation. Wind power is becoming more affordable, which could increase utilization rates.

Learn what’s driving the industry and consider three high-potential stocks for any growth portfolio.

New Wind Capacity Added in 2020

Deployment of wind power equipment increased significantly this year. 2,000 megawatts were added in the third quarter alone, an increase of 72% compared to the same quarter last year.

Two of the largest wind projects in history came online in the same quarter. The Cheyenne Ridge wind farm in Colorado produces 496 megawatts of electricity, while the Aviator Wind farm in Texas adds another 525 megawatts to the grid.

Affordability is the key to these new developments. Last year, the cost of the average wind project with installation was down by 16%. The average price of a utility-grade wind turbine has decreased by more than 50% since 2008.

These costs are expected to decline further, thanks to improved efficiency in manufacturing.

Stocks to Watch for Wind Power in 2021

Some of the best wind power stocks are also incredibly affordable. The following stocks are excellent options to generate long-term returns from the industry.

  • Vestas Wind Systems – (OTC: VWDRY) This pure-play wind company focuses exclusively on the development, manufacture, sale, and operation/maintenance of wind power facilities. The company is dominant in the U.S. market and generates more than 24,000 megawatts globally. It offers just a small dividend yield of 0.38% but has strong potential for growth as the alternative energy market expands.

  • NextEra Energy (NYSE: NEE) – This company develops wind and solar energy infrastructure, making it a more diversified pick for alternative energy. It offers a dividend yield of 1.86% and the stock is up 27% in the year so far.
  • General Electric Company (NYSE: GE) – As one of the world’s leading turbine companies, General Electric stands to gain big as wind power increases its momentum. The stock returns a dividend yield of 0.41% and the stock is a bargain today. The company has been addressing operational challenges while reducing its costs, putting it in a strong position to grow in 2021 and beyond.

Renewable energy is the future of all electricity in the United States. Investing in wind power today could result in significant gains and even reliable dividend returns in 2021.

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