Stocks to buy

Sustainable investing is gaining in popularity. The good news for investors is that there have never been more options available when it comes to making socially responsible capital allocations. For those on the hunt for sustainable investing stocks to buy, many successful and profitable companies are tackling climate change and seeking to improve their impact on the environment.

Investors looking for peace of mind that their investments are serving a greater good are able to cast a wide net. That’s because a growing number of companies in the U.S. and abroad are taking the principles of environmental, social and corporate governance (ESG) seriously, and integrating it into their business practices with the understanding that it will be reflected in their share price.

Here are three sustainable investing stocks to buy for socially responsible gains.

GE General Electric $101.77
F Ford Motor $11.79
ALB Albemarle $172.91

General Electric (GE)

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Largely known for making aircraft engines, industrial giant General Electric (NYSE:GE) isn’t the first name that comes to mind when talking about sustainable investments. However, the company is pushing further into renewable energy, namely with GE Vernova, a division that focuses almost exclusively on renewable power. Specifically, GE Vernova develops wind turbines, hydropower generation and energy storage solutions.

The Vernova unit is being spun off by GE as part of the company’s plan to divide itself into three companies that will focus on aviation, healthcare and renewable energy. GE Vernova is currently posting losses but is expected to be profitable in 2024. The Vernova business is also expected to benefit from the $4.5 billion the Biden administration plans to spend on climate change initiatives.

Owing largely to its spin-off plans, GE stock has gained 73% in the past 12 months, including a 56% increase this year.

Ford Motor (F)

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After decades of burning fossil fuels and exuding emissions, the automotive industry is going green with electric vehicles (EVs). Leading the charge in America is Ford Motor (NYSE:F), which is spending more than $50 billion in an effort to produce 2 million electric vehicles a year by the end of 2026. Investments made as part of the automaker’s growth plan include the development of a new mega campus in Tennessee and two battery plants in Kentucky.

While Ford isn’t the only vehicle manufacturer that is shifting its fleet to more environmentally sustainable EVs, it is spending more money than most of its competitors and operating on an accelerated timetable. It’s all part of Ford’s efforts to supplant rival Tesla (NASDAQ:TSLA) as the top producer of electric vehicles in America.

Investors may also like that F stock is trading at just 7.3 times forward earnings, below its five-year average, after declining 17% over the past 12 months. And the company pays a quarterly dividend of 15 cents a share for a yield above 5%.

Albemarle (ALB)

Source: IgorGolovniov/Shutterstock.com

As the largest producer of lithium for EV batteries in the world, Albemarle (NYSE:ALB) has an important role to play in the sustainable economy. A chemical manufacturer, Albemarle has proven to be a key player in the automotive and battery industries, supplying much of the lithium that is helping society transition away from burning fossil fuels.

As might be expected, ALB stock has been on an upswing as demand for lithium skyrocketed. Rising demand led to a spike in the price of lithium in recent years, although prices have softened.

Over the past five years, ALB stock has gained 78%. In the past 12 months, however, the company’s share price has come down 10%. This is mainly due to shifting demand in China, where the country’s electric vehicle production has been repeatedly interrupted due to Covid-19 lockdowns. Demand in China and elsewhere is forecast to pick up as we firmly put the pandemic in our rearview mirror, which is good news for Albemarle’s future outlook.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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