Wednesday, April 8, 2015

Do well and do good


Sectors that are the most vulnerable to climate change are mining, transportation, electricity generation using fossil fuels, power plants, refineries and construction materials companies according to recent research.  By making climate change a ‘boardroom priority‘ industries can put measures and controls in place to ensure their sustainability and longevity. 

As individuals we can all make a difference by choosing to invest responsibly and at the same time earn a dividends in companies that will inevitably become more sustainable businesses.

There are pitfalls of just looking at the high dividend yielding shares. Companies with yields greater than 10% may have a falling share price, poor future prospects and may have issued a once-off special dividend.  A good place to start when choosing shares to invest in  is http://www.marketindex.com.au/analysis/dividend-yield. They look at the fundamentals of 150 top companies on the ASX and project the DPS or the Dividend Per Share growth over the next two years. 

Analysts have proven over the past 3 years that by investing in low carbon footprint companies you can beat the index such as the S&P the ASX200. Corporate Knights Capital www.corporateknightscapital.com offer private investment research and a portfolio construction tool  if you are looking for greener alternative shares.