PODCAST: ESG Dividend Stocks. Global 100 Companies. Plus…

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ESG Dividend Stocks. Global 100 Companies. Plus… includes these companies…QUALCOMM, NextEra Energy, Texas Instruments, Cabot Corporation, Kimco Realty, Hewlett Packard Enterprise Company, Amgen, Moelis & Company, Artisan Partners Asset Management, Novavax, Vir Biotechnology, SSE, Greencoat UK Wind, and funds iShares ESG Aware MSCI USA ETF, Invesco ESG Nasdaq-100 ETF, and Xtrackers S&P 500 ESG ETF

PODCAST: ESG Dividend Stocks. Global 100 Companies. Plus…

Transcript & Links, Episode 75, January 28, 2022

Hello, Ron Robins here. Welcome to podcast episode 75 published on January 28, 2022, titled “ESG Dividend Stocks. Global 100 Companies. Plus…” — and presented by Investing for the Soul. investingforthesoul.com is your site for vital global ethical and sustainable investing news, commentary, information, and resources.

Remember that you can find a full transcript, links to content – including stock symbols, quotes, and bonus material – at this episode’s podcast page located at investingforthesoul.com/podcasts.

Now, just a reminder. I do not evaluate any of the stocks or funds mentioned in this podcast. Furthermore, if you’re concerned about the ESG and sustainability ratings of any stock or fund included in this podcast, check your broker’s online site for such information.

If your broker doesn’t have this information, signup for free with Morningstar and you can gain access to company and fund ESG-sustainability ratings. Please note, I receive no compensation from Morningstar or anyone else covered in these podcasts.

Also, if any terms are unfamiliar to you, simply Google them.

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1. ESG Dividend Stocks. Global 100 Companies. Plus…

I’m beginning with this fine piece of annual research by Canada’s Corporate Knights. It’s their highly respected Global 100 Sustainability list. See the listings here.

I’m going to quote from a companion article for an overview of this research. It’s by Mike Scott, titled, Global 100 companies prove sustainability is good for business. Here are some quotes…

“Again this year, the Corporate Knights Global 100 most sustainable corporations are progressing faster than their peers. Members of the MSCI All Country World Index (ACWI), a global equity index, derive just 30% of their earnings from products or services aligned with the Corporate Knights Clean Taxonomy, while 47% of the Global 100 do so (up from 41% last year). Crucially, Global 100 companies are also investing more aggressively in clean technologies and services, with 48% of their capital expenditures, R&D and acquisitions going to clean investments, versus 34% for ACWI…

This is reflected in their performance. Since the market bottomed in the spring of 2020, the Global 100 has made gains of 22% against the ACWI, reflecting investors’ focus on a green recovery…

Compared to the average ACWI firm, Global 100 members generate more than four times the output per tonne of carbon emitted and almost eight times more output per unit of energy consumed…

More Measures Showing Global 100 Outperformance!

The ratio of CEO pay to that of the average worker is also lower in Global 100 firms, at 111:1, while at other companies, the pay gap has grown from 124:1 to 140:1, extending the gulf between executives and workers. And while 87% of Global 100 companies link executive compensation to meeting sustainability targets, up from 80% last year, the proportion of companies in the benchmark index may have more than doubled, but that is from just 14% last year to 34% this year…

A number of high-profile names were excluded from the Global 100 because of specific red-flagged activities, such as weapons production (including Airbus, Rolls-Royce Holdings and Boeing) and climate policy blocking (Ford Motor Company, Daimler AG, Chevron and Air France).” End quotes.

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2. ESG Dividend Stocks. Global 100 Companies. Plus…

Many ethical and sustainable investors are seeking income from their investments. So, here’s a source for you, titled 10 ESG Dividend Stocks to Buy. It’s by Fatima Farooq and found on Yahoo!Finance. Concerning the quoted ESG scores, the article says, quote, the S&P Global's ESG Score Tracker rates companies on a scale of 0-100, with 100 being the best performance. Any ESG score above 50 means the company's ESG rating is above average, and when the score crosses 70, the company's ESG performance is considered to be on a positive rise relative to other companies.”

So here are the ten stocks followed by brief author comments on each one.

10. QUALCOMM, Incorporated (NASDAQ:QCOM)

Dividend Yield: 1.5% ESG Score: 56

(Is) an information technology company, develops and commercializes foundational technologies for the global wireless industry. The company has been raising its dividend for 11 years, and with an ESG score above 50, it is among the best stock picks for those seeking ESG dividend stocks to buy.

9. NextEra Energy, Inc. (NYSE:NEE)

Dividend Yield: 1.8% ESG Score: 86

NextEra Energy, Inc. is a utilities company that generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company has one of the highest ESG scores on our list.

8. Goldman Sachs Group, Inc. (NYSE:GS)

Dividend Yield: 2.1% ESG Score: 50

Goldman Sachs Group, Inc. is a financial institution providing financial products and services worldwide. The company has an ESG score of 50 according to S&P Global's ESG Score Tracker.

7. Texas Instruments Incorporated (NASDAQ:TXN)

Dividend Yield: 2.4% ESG Score: 53

Texas Instruments Incorporated is an information technology company that specializes in manufacturing and selling semiconductors to electronics designers and manufacturers across the globe. The company's ESG score according to S&P Global is 53, making it one of the top ESG dividend stocks to buy. It operates through its Analog and Embedded Processing segments.

6. Cabot Corporation (NYSE:CBT)

Dividend Yield: 2.4% ESG Score: 68

Cabot Corporation is a specialty chemicals and performance materials company. It offers reinforcing carbons for use in tires, alongside products such as hoses, belts, and molded goods. The company's ESG score of over 60 makes it a noteworthy option for those seeking ESG dividend stocks to buy.

5. Kimco Realty Corp (NYSE:KIM)

Dividend Yield: 2.72% ESG Score: 65

Kimco Realty (is) a real estate investment trust, is based in Jericho, New York, and is among the largest publicly traded owner and operators of open-air, grocery-anchored shopping centers in the US. The company has a dividend payout ratio of 49.9%, and with an ESG score of over 60, it is among the most noteworthy ESG dividend stocks to buy.

4. Hewlett Packard Enterprise Company (NYSE:HPE)

Dividend Yield: 3.2% ESG Score: 87

Hewlett Packard Enterprise Company is an information technology company that offers solutions for capturing, analyzing, and acting upon data. Its ESG score is among the highest on our list, standing at 87.

3. Amgen, Inc. (NASDAQ:AMGN)

Dividend Yield: 3.3% ESG Score: 60

Amgen, Inc. is a biotech company. It works to discover, develop, manufacture, and deliver human therapeutics across the globe. The company’s ESG score according to S&P Global is 60, making it one of the most renowned ESG dividend stocks to buy.

2. Moelis & Company (NYSE:MC)

Dividend Yield: 4.0% ESG Score: 67

Moelis & Company is a financial corporation operating in the US, Europe, and internationally. It offers advisory services in mergers and acquisitions, recapitalization and restructurings, capital markets transactions, and other matters related to corporate finance. It has a payout ratio of 43.5%, making it one of the popular ESG dividend stocks to buy.

1. Artisan Partners Asset Management Inc. (NYSE:APAM)

Dividend Yield: 9.3% ESG Score: 67

Artisan Partners Asset Management Inc is an asset management and custody banks corporation. It provides services to pension and profit-sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds, and non-US funds, among others. It has an ESG score of 67 according to Investors Business Daily, making it one of the higher-ranked dividend ESG stocks to buy.” End quotes.

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3 Popular ESG Indexes and How to Invest in Them

Now want to invest in a top-line ESG index fund? This article is for you. It’s titled 3 Popular ESG Indexes and How to Invest in Them by Prableen Bajpai. Seen on Nasdaq.com. Quote

“1. MSCI USA Extended ESG Focus Index

The MSCI USA Extended ESG Focus Index launched in March 2018 and is based on MSCI USA Index, which includes securities across the U.S. equity markets.

The index is tracked by iShares ESG Aware MSCI USA ETF (ESGU), which is one of the largest ESG funds… (gives) exposure to large- and mid-cap U.S. stocks with favorable ESG practices. The fund has $25.48 billion as assets under management and an expense ratio of 0.15%.

2. Nasdaq-100 ESG Index

The Nasdaq-100 ESG Index, launched on June 21, 2021, is designed to measure the performance of companies included in the Nasdaq-100 Index that meet all ESG measures

Investors can get exposure to the Nasdaq-100 ESG Index by investing in the Invesco ESG Nasdaq-100 ETF (QQMG), which was launched in November 2021.

3. S&P 500 ESG Index

The S&P 500 ESG Index is a broad-based, market-cap weighted index that is designed to measure the performance of securities meeting sustainability criteria, while maintaining similar overall industry group weights as the S&P 500.

The index is followed by Xtrackers S&P 500 ESG ETF (SNPE). The ETF was launched in June 2019, and currently has $881 million (in) assets under management and an expense ratio of 0.10%.” End quotes.

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Other Honorable Mentions – not in any order

1. Title Barron’s Top-Performing Sustainable Investment Fund of 2021 by Lauren Foster. Quote “The No. 1 and No. 2 spots on our list are the $1.3 billion HCM Tactical Growth (HCMGX) and the $1.3 billion HCM Dividend Sector Plus (HCMNX) funds.” End quote.

2. Title 5 Energy Stocks To Watch This Week seen on Nasdaq. Only two are non-fossil-fuel-related. They are Enphase Energy Inc. (NASDAQ: ENPH) and Daqo New Energy Corp (NYSE: DQ). The latter is controversial due to forced labor accusations.

3. Title A New ESG Trend | Nasdaq. By dkorth@finsum.com. Quote. “AQR is one of the leading quant funds… with a new idea in ESG. Their new Sustainable Long-Short Equity Carbon Aware Fund.” End quote.

4. Title 2 Best COVID-19 Growth Stocks to Own in 2022 | Nasdaq. By George Budwell. Quote Novavax (NASDAQ: NVAX) and Vir Biotechnology (NASDAQ: VIR) both appear to be deeply undervalued relative to their long-term prospects.” End quote.

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Articles Related to UK and European Stocks and Funds

1. Title 3 renewable energy stocks to buy to hold until 2030 (yahoo.com). By Rupert Hargreaves. The three are SSE (LSE: SSE), Greencoat UK Wind (LSE: UKW), and Ceres Power (LSE: CWR).

2. Title How to invest in the future of food and meat-free alternatives | This is Money. By Angharad Carrick. He reviews the Rize Sustainable Future of Food UCITS ETF, the Blackrock Nutrition fund, Agronomics, and Pictet Nutrition fund.

3. Title Five clean energy infrastructure stocks to watch in 2022 (thearmchairtrader.com). By Adel Ahmed. They are again SSE (LSE: SSE) and Greencoat UK Wind (LSE:UKW), plus Net Zero Infrastructure (LSE:NZI), Minnova Corp (TSXV:MCI), and AFC Energy (LSE:AFC).

4. Title What were the most popular clean energy ETFs of 2021? (thearmchairtrader.com). By Rony Abboud. Has the top ten clean energy ETFs by assets under management (AUM). Explains the holdings of the Global X China Clean Energy ETF.

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Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast: “ESG Dividend Stocks. Global 100 Companies. Plus…”

To get all the links, stock symbols, or to read the transcript of this podcast -- and more -- go to investingforthesoul.com/podcasts and scroll down to this episode.

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Contact me if you have any questions.

Stay well and healthy—and conscious about the ethical and sustainable values of your investments!

Thank you for listening.

Talk to you next on February 11. Bye for now.

© 2022 Ron Robins, Investing for the Soul.

90 episodes