It’s said that every generation starts out with the best intentions. Whether Gen Z finishes what it starts is almost a moot point, though, if all an investor is looking for is growth. A cynic might look at investment themes among upcoming generational cohorts and spot growth trends rich with upside. Indeed, the ethical and social dimension of these trends may almost seem incidental.
However, there are already signs that the environmental concerns of young investors are going mainstream. This, then, means that capital growth in the green economy could actually turn out be sustainable long term. Perhaps even as sustainable as the practices upon which it is founded.
Solar power is having its time in the sun
Battery tech and solar power seem made for each other. Tesla’s Powerwall offers an alternative to California wildfire victims locked out of the grid, for instance. Using a combination of solar and electric batteries, homeowners are able to say goodbye to utilities and source their own energy directly from the Sun. TSX investors have a range of options here, including commodity upside via stocks like Lithium Americas.
Investors in electric vehicles should keep an eye on Tesla’s upcoming Battery Day. Depending on components, Tesla’s sneak peak at its next generation of batteries could see certain commodities trend higher. Key metals to watch include lithium, cobalt, and copper. Lundin Mining is a go-to play for copper dividends, paying a yield of 2.4%.
Other auto makers getting into the electric vehicles space could also catch some waves from Battery Day. Names to watch include Magna International. Magna, like Tesla, is also active in the electric vehicle market in China, with a key partnership with the Beijing Electric Vehicle. Magna’s international diversification has helped keep the stock relatively resistant to current market forces.
Alt-meat stocks are going mainstream
Just as Tesla has its TSX analogues, there are Canadian-focused plays on the alt-meat space, too. All eyes have been on Beyond Meat during the pandemic. The meat-free protein producer is a source of steep upside. But the alt-meat boom also holds promise as a go-to foodstuff amid food production and supply chain bottlenecks. Plant-based proteins offer the potential for a mainstream stand-in as a meat shortage looms.
There are a couple of options for investors looking to catch some upside from Beyond Meat without investing directly. A low-risk play involves buying shares in partnered fast-food outlets, such as Restaurant Brands. The Tim Hortons owner has introduced meat-free options across its trident of outlets, which also includes Popeyes and Burger King. A 3.9% dividend yield is on offer with some room for growth.
The ESG (environmental, social, and governance) investing category is picking up momentum and promises to reward early adherents in the long term. Young investors of the millennial and Gen Z generational cohorts are driving upside in ethical investing. However, there is scope for investors of every age bracket to grow wealth for years to come by stashing ESG-powered names in a stock portfolio.
