What is the Senate megabill mentioned in this stock group?

The Senate megabill refers to proposed legislation that would create new excise taxes on wind and solar energy projects while also cutting existing federal tax credits for renewable energy. If passed, this could significantly increase costs for renewable energy developers and potentially benefit conventional energy producers like those featured in this stock collection.

How might these policy changes affect conventional energy companies?

If renewable energy becomes more expensive due to new taxes and reduced tax credits, conventional energy sources like natural gas, coal, and nuclear may become more cost-competitive. This could lead to increased market share, higher demand, and potentially improved profitability for traditional energy producers and utilities that operate conventional power plants.

What are excise taxes and how do they impact renewable energy?

Excise taxes are special taxes imposed on specific goods or activities, typically added to the price of products. In the context of the proposed legislation, new excise taxes on wind and solar projects would directly increase their development costs. This makes renewable energy more expensive to produce, potentially slowing its growth and making conventional energy sources relatively more affordable and competitive.

What is the difference between conventional and renewable energy?

Conventional energy comes from traditional sources like coal, natural gas, oil, and nuclear power that have historically dominated electricity generation. These typically use limited resources that must be extracted. Renewable energy comes from naturally replenishing sources like wind, solar, and hydropower that are theoretically unlimited. The stocks in this collection focus on conventional energy companies that may benefit if renewable energy faces new financial hurdles.

What is a "dividend yield" mentioned in the stock data?

Dividend yield is the annual dividend payment amount divided by the current stock price, expressed as a percentage. For example, if a $50 stock pays $2 in annual dividends, the dividend yield is 4%. Many conventional energy companies offer higher dividend yields compared to other sectors, which can provide regular income to investors regardless of stock price movements.

What does "Market Cap" mean in the stock information?

Market capitalization (Market Cap) refers to the total dollar value of a company's outstanding shares. It's calculated by multiplying the current share price by the total number of shares. Market cap helps indicate a company's size - typically categorized as large-cap (over $10 billion), mid-cap ($2-10 billion), or small-cap (under $2 billion). Larger companies typically represent more established businesses with potentially lower volatility.

15 handpicked stocks

Conventional Power's Edge

A potential game-changer for traditional energy companies. This collection features carefully selected stocks poised to benefit from new legislation that increases costs for wind and solar, creating competitive advantages for established oil, gas, coal, and nuclear producers.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 30