10 Best Wind Energy Stocks 2024 (How to Evaluate + Pros & Cons)

by Anthony Zhang

Wind energy is one of the fastest-growing segments in the renewable energy sector. Wind energy stocks offer investors a chance to participate in the transition towards cleaner, sustainable energy sources.

But, these renewable energy assets come with risks and rewards based on technological growth, regulatory changes, and demand for clean energy.

In this article, we’ll explore the 10 potentially profitable wind energy stocks of 2024 and the five factors to consider before investing in wind energy. We’ll also delve into the four pros and cons of investing in wind energy stocks.

Lastly, we’ll share a lucrative alternative investment opportunity in fine wine.

10 Potentially Profitable Wind Energy Stocks to Explore in 2024

Here are the 10 potentially high-yielding wind energy stocks to consider in 2024:

1. Clearway Energy Inc Class C (NYSE: CWEN)

2. Northland Power (TSE: NPI)

3. NextEra Energy (NYSE: NEE)

4. Dominion Energy, Inc. (NYSE: D)

5. General Electric (NYSE: GE)

6. Iberdrola S.A. (US:OTC: IBDRY)

7. Ørsted A/S (OTCMKTS: DNNGY)

8. Eversource Energy (NYSE: ES)

9. Brookfield Renewable Partners LP (NYSE: BEP)

10. Eneti Inc. (NYSE: NETI)

1. Clearway Energy Inc Class C (NYSE: CWEN)

Clearway Energy Inc. is a publicly traded renewable energy company in the US with a diversified portfolio of assets across wind, solar, and thermal energy. Its Class C renewable energy stock has delivered stable performance and substantial dividends.

Forward Dividend & Yield: 5.18%
Market Cap: $5.60 billion
Average Volume: 984K
P/E Ratio (TTM): 5.36
EPS (TTM): 5.27

2. Northland Power (TSE: NPI)

Northland Power is a Canadian-based utility company that develops, builds, owns, and operates clean and green power infrastructure assets. Its portfolio includes natural gas, wind, and solar energy assets.

Historically, Northland Power's diversified portfolio of renewable energy assets has provided it with steady cash flows and a strong performance in the stock market.

Forward Dividend & Yield: 4.41%
Market Cap: CAD 6.86 billion
Average Volume: 791K
P/E Ratio (TTM): 9.93
EPS (TTM): 2.74

3. NextEra Energy (NYSE: NEE)

NextEra Energy is one of North America’s largest electric power and energy infrastructure companies. The company's growth has been driven by its subsidiary, NextEra Energy Resources, one of the world’s largest wind and solar power generators.

Forward Dividend & Yield: 2.52%
Market Cap: $148.6 billion
Average Volume: 7.18 million
P/E Ratio (TTM): 21.79
EPS (TTM): 3.37

4. Dominion Energy, Inc. (NYSE: D)

Dominion Energy, Inc. is one of the United States’ largest producers and transporters of energy. A strategic shift to clean energy has affected its financial performance, with significant capital expenditures and potential for long-term growth.

Forward Dividend & Yield: 5.06%
Market Cap: $43.18 billion
Average Volume: 3.91 million
P/E Ratio (TTM): 35.88
EPS (TTM): 1.44

5. General Electric (NYSE: GE)

General Electric (GE) is a multinational corporation that operates across various sectors, including aviation, healthcare, electricity, and renewable energy like wind. GE has become one of the significant players in wind energy, providing turbines for both onshore and offshore projects.

GE Vernova is its division focused on sustainability and green energy solutions.

Forward Dividend & Yield: 0.31%
Market Cap: $116.71 billion
Average Volume: 5.74 million
P/E Ratio (TTM): 14.70
EPS (TTM): 7.28

6. Iberdrola S.A. (US:OTC: IBDRY)

Iberdrola S.A. is a Spanish multinational electric utility company. It's one of the world’s largest utility firms and a global leader in wind energy.

Its geographical diversification, with operations in Spain, the UK, the US, and Brazil, has allowed it to tap into different markets and reduce regional risks.

Forward Dividend & Yield: 5.30%
Market Cap: $81.06 billion
Average Volume: 82K
P/E Ratio (TTM): 16.48
EPS (TTM): 3.14

7. Ørsted A/S (OTCMKTS: DNNGY)

Ørsted A/S is a Danish multinational power company and a world leader in offshore wind power. The company's expertise in offshore wind energy and its strong project pipeline suggested a potential for continued growth.

Forward Dividend & Yield: 2.09%
Market Cap: $40.18 billion
Average Volume: 45K
P/E Ratio (TTM): 25.09
EPS (TTM): 1.27

8. Eversource Energy (NYSE: ES)

Eversource Energy is a publicly-traded, Fortune 500 energy company headquartered in Connecticut and Massachusetts. Its commitment to a cleaner energy future with investments in offshore wind energy provides immense growth opportunities.

Forward Dividend & Yield: 3.81%
Market Cap: $24.27 billion
Average Volume: 1.91 million
P/E Ratio (TTM): 16.65
EPS (TTM): 4.18

9. Brookfield Renewable Partners LP (NYSE: BEP)

Brookfield Renewable Partners LP is one of the largest pure-play renewable energy companies with a diverse hydroelectric, wind, and solar portfolio.

Its focus on renewable energy, primarily hydroelectric power, and its foray into wind have helped it deliver solid returns over the years.

Forward Dividend & Yield: 4.59%
Market Cap: $13.18 billion
Average Volume: 247K
P/E Ratio (TTM): N/A
EPS (TTM): -0.53

10. Eneti Inc. (NYSE: NETI)

Eneti Inc. (previously Scorpio Bulkers) was primarily a dry bulk commodities shipping company until it announced a significant shift in its business model in 2020.

The company has transitioned to the offshore wind farm sector by procuring wind turbine installation vessels, an industry with promising growth.

Forward Dividend & Yield: 0.34%
Market Cap: $458.35 million
Average Volume: 730K
P/E Ratio (TTM): 5.47
EPS (TTM): 2.17

While these ten wind energy stocks offer good returns, wind is not the only renewable energy sector poised for growth. You can find similar investment opportunities in another renewable energy source - solar energy stocks.

3 Other Renewable Energy Stocks to Check Out

Here are three other clean energy stocks you can invest in:

1. SolarEdge Technologies (NASDAQ: SEDG)

SolarEdge Technologies is a leading global provider of comprehensive photovoltaic (PV) solar power systems. Its solar energy solutions offer better efficiency while reducing installation and energy storage costs, setting its renewable energy stock apart from most competitors.

2. Canadian Solar Inc. (NASDAQ: CSIQ)

Canadian Solar Inc. is one of the world's largest solar technology and renewable energy companies. The company is involved in all aspects of solar energy, from solar panel manufacturing to project development and operations and maintenance services.

Investors often view Canadian Solar as a competitive player in the renewable energy sector, offering exposure to the growing solar industry.

3. Enphase Energy Inc. (NASDAQ: ENPH)

Enphase Energy Inc. is a leading provider of microinverter-based solar plus storage systems. The company's innovative solutions significantly increase energy production and reliability in solar panel modules.

Enphase's end-to-end approach, from inverter technology to energy storage and software solutions, has established it as a critical player among companies promoting renewables.

5 Key Factors for Evaluating Wind Energy Stocks

Here are the five crucial factors to consider when investing in renewable energy stocks like wind power:

1. Revenue Growth and Profitability

A steady rise in revenue indicates increasing sales of electricity, more wind energy projects coming online, or successful entry into new markets. A decline in revenue, however, signals problems, such as operational issues, decreasing demand, or heightened competition.

As for profitability – while high and improving margins prove that the company is effective at controlling costs, declining margins mean the company fails to pass those costs on to customers.

A higher earnings per share (EPS) indicates the company is generating more profits for its shareholders through earnings from operations, government subsidies, or one-time events like asset sales.

Another significant metric is the price-to-earnings (P/E) ratio. Since shareholders secure gains through dividends and buybacks, a low P/E ratio means you’re paying less for every dollar of profit.

For wind energy companies, P/E ratios can be impacted by regulatory changes, technological advancements, or fluctuations in energy prices.

3. Return on Investment (ROI) and Return on Equity (ROE)

A high ROI for wind energy stocks shows that the company effectively uses its capital to generate profit.

Another key metric, return on equity (ROE), indicates how effectively management uses a company’s assets to create profits. A high ROE occurs when a wind energy company generates good shareholder returns.

4. Capacity Expansion and Project Pipelines

Capacity expansion for wind energy companies involves:

Building new wind farms,
Adding more turbines, or
Enhancing the efficiency of current turbines to generate more power

When evaluating clean energy stocks, examine the company's track record and plans for capacity expansion.

It’s also crucial to assess the company’s project pipeline to confirm that they’re proactively seeking growth opportunities.

5. Government Policies and Subsidies

Many governments offer subsidies or tax incentives to encourage the development of renewables, including wind energy, to combat climate change. This can lead to a potentially positive impact on renewable energy investment.

Besides subsidies and tax breaks, some governments also undertake policies favorable to the wind energy sector:

Renewable Portfolio Standards (RPS): Utilities source a certain percentage of their energy from a renewable source like wind, guaranteeing a market for wind power.
Carbon pricing: Policies that price carbon emissions, such as cap-and-trade systems or carbon taxes, make fossil fuels like natural gas expensive.
Research and development support: Government funding for research and development can lead to technological advancements that make wind energy more efficient and cost-effective.

4 Advantages of Investing in Wind Energy Stocks

If you’re considering investing in renewable energy stocks like wind power, here are four reasons to go ahead:

1. Portfolio Diversification

As wind energy companies operate in the renewable energy sector, distinct from traditional sectors, investing in wind energy stocks diversifies your portfolio. Besides industry diversification, you have scope for:

Asset diversification (stocks, bonds, direct ownership, etc.)
Geographic diversification (wind farms are located all over the world, giving you exposure to foreign companies)
Green energy diversification (adds a level of diversification within the renewable energy investment space)

2. Renewable Energy Growth

Investing in wind energy stocks promotes the growth of the renewable energy sector in several ways:

When you invest in wind energy stocks, companies can fund research and development, build new wind farms, upgrade technology, and more.
More investments in wind energy stocks signal that there's a strong interest and confidence in the future of wind energy.
A thriving market for wind energy stocks indicates strong investor support for renewable energy. This encourages the enactment of favorable government policies such as tax incentives or renewable portfolio standards.

3. Environmental Sustainability

If you invest in wind energy stocks, you support clean energy, help drive technological innovations, mitigate climate change, and promote a transition to renewable energy.

You can even advocate for responsible environmental practices, such as minimizing the impact of wind farms on local ecosystems and recycling or sourcing materials sustainably.

4. Cost Competitiveness

While investing in the wind energy sector, you help fund research, provide capital to scale up production and facilitate competition within the wind power sector. Your investment can help mobilize more capital to the industry, spurring competition and promoting cost-effectiveness.

4 Challenges of Investing in Wind Energy Stocks

Here are the four challenges to consider when investing in wind energy stocks:

1. Regulatory and Policy Uncertainties

Many governments offer subsidies or tax incentives to promote the development of a renewable energy source like wind energy. But any changes in these policies can lead to uncertainties, negatively impacting the profitability of green energy companies.

Additionally, shifts in environmental regulations and political policy (such as carbon pricing standards) can cause uncertainties in the sector.

2. Fluctuations in Energy Prices and Market Demand

High fossil fuel (coal, oil, natural gas) prices make wind energy more economically competitive, potentially boosting the performance of wind energy stocks. But lower fossil fuel prices could also lead to a slump in wind energy stocks.

The demand for wind energy can also fluctuate based on various factors. Changes in government policy, such as high carbon pricing, boost demand for wind energy. But any decrease in incentives for the renewable sector can reduce demand.

3. Technological Advancements and Competition

Wind energy stocks can take a hit if other renewable technologies become more efficient and cost-effective or breakthroughs occur in fossil fuel extraction. The wind energy sector also faces technical challenges like integrating wind power into existing electrical grids and power storage.

Moreover, an increase in competition, within the wind energy sector and from other energy sectors, can put downward pressure on the prices of green energy stocks.

4. Environmental Considerations and Public Acceptance

While wind energy has many environmental benefits, it also has potential environmental and social downsides. Wind turbine installations can harm wildlife, increase noise pollution, and cause land use conflicts.

These environmental considerations give wind farms a bad rep, impacting wind energy stocks.

However, wind power is not the only alternative investment option. You can expect more lucrative returns by investing in another alternate asset class like fine wine.

We’ll tell you why.

Investing in Fine Wine: A Lucrative Alternative that Outpaces the Stock Market

The global fine wine market is expected to grow from $340.23 billion in 2021 to $456.76 billion in 2028 at a CAGR of 4.30%. Besides, historically wine investment has generated 58% returns, outpacing the stock market’s 52%.

But compelling returns aren’t the only reason to invest in wine. Here are some other benefits worth considering:

Returns on wine investment are based on supply and demand, and has hardly any correlation with market fluctuations.
Wine is an excellent source of passive income – returning attractive gains over time. For instance, $100 invested in fine wine in 1952 would yield $420,000 in 2020, an average annual return of 6,175%.
Technological advancement has made wine investment accessible like never before through online platforms like Vinovest.
Premium vintage wines have been superstars at auction events, too, producing unbelievable results. For example, a 6-liter bottle of winemaker Heidi Barrett’s 1992 Screaming Eagle Cabernet sold for a jaw-dropping $500,000 at the Napa Valley Wine Auction in 2000!

But how do you invest in wine to reap these high rewards?

Enter Vinovest.

How to Invest in Wine Through Vinovest

Vinovest is an AI-driven wine investment platform that lets you quickly source, store, and sell some of the best wines from around the world.

The benefits of investing through Vinovest include:

Easy buying and selling: The Vinovest platform simplifies the buying and selling of world-class wines with just a few clicks.
Best prices: Vinovest directly sources your wine from renowned wineries, exchanges, and global wine auctions.
Provenance and authenticity: Vinovest’s experts track each of your wines’ provenance, so you don’t have to worry about ending up with a counterfeit bottle.
Optimal storage and insurance: Your fine wine bottle is stored in temperature-controlled warehouses under optimal humidity, light, and vibration levels.
Easy delivery: Vinovest ensures hassle-free delivery worldwide to your doorstep.

Diversify Your Portfolio With Wind Energy Stocks and Wine

Given the turbulence in the conventional stock market sectors, it’s ideal to build a portfolio of renewable energy assets, such as wind energy stocks.

However, if you’re looking for an inflation-resistant, high-return asset that outclasses green energy stocks, consider investing in fine wine.

10 Best Wind Energy Stocks 2024 (How to Evaluate + Pros & Cons)

Further reading

10 Potentially Profitable Wind Energy Stocks to Explore in 2024

1. Clearway Energy Inc Class C (NYSE: CWEN)

2. Northland Power (TSE: NPI)

3. NextEra Energy (NYSE: NEE)

4. Dominion Energy, Inc. (NYSE: D)

5. General Electric (NYSE: GE)

6. Iberdrola S.A. (US:OTC: IBDRY)

7. Ørsted A/S (OTCMKTS: DNNGY)

8. Eversource Energy (NYSE: ES)

9. Brookfield Renewable Partners LP (NYSE: BEP)

10. Eneti Inc. (NYSE: NETI)

3 Other Renewable Energy Stocks to Check Out

1. SolarEdge Technologies (NASDAQ: SEDG)

2. Canadian Solar Inc. (NASDAQ: CSIQ)

3. Enphase Energy Inc. (NASDAQ: ENPH)

5 Key Factors for Evaluating Wind Energy Stocks

1. Revenue Growth and Profitability

2. Earnings Per Share (EPS) and Price-to-Earnings (P/E) Ratio

3. Return on Investment (ROI) and Return on Equity (ROE)

4. Capacity Expansion and Project Pipelines

5. Government Policies and Subsidies

4 Advantages of Investing in Wind Energy Stocks

1. Portfolio Diversification

2. Renewable Energy Growth

3. Environmental Sustainability

4. Cost Competitiveness

4 Challenges of Investing in Wind Energy Stocks

1. Regulatory and Policy Uncertainties

2. Fluctuations in Energy Prices and Market Demand

3. Technological Advancements and Competition

4. Environmental Considerations and Public Acceptance

Investing in Fine Wine: A Lucrative Alternative that Outpaces the Stock Market

How to Invest in Wine Through Vinovest

Diversify Your Portfolio With Wind Energy Stocks and Wine

Related Articles

Vinovest Quarterly Report, Q2 2023

12 Best Artificial Intelligence (AI) ETFs To Buy In 2024: Pros & Cons

12 Best Artificial Intelligence (AI) ETFs To Buy In 2024: Pros & Cons

6 Best-Performing Uranium ETFs: Why Invest in Them, Pros & Cons

Vinovest Quarterly Report, Q2 2023

12 Best Artificial Intelligence (AI) ETFs To Buy In 2024: Pros & Cons