Buy for low-risk “green” gains

Article Excerpt

A number of “green” stocks have emerged in the past few years as concern over the environment has grown. However, most of these companies lose money. That’s because many green technologies are still in the concept or research stages. As well, many of these firms are heavily reliant on government subsidies, which could be cut as governments deal with their high deficits. FPL Group is an excellent example of a profitable, low-risk green stock. (To reflect its increasing focus on green power, it is assuming the name of its NextEra alternative-energy subsidiary.) Steady income from FPL’s regulated power operations in Florida helps offset its less-predictable wind and solar-power projects. As well, its expansion into other parts of North America cuts its reliance on a single region. To top it off, the company has a long history of raising its dividend. FPL GROUP INC. $48 (New York symbol FPL; Income Portfolio, Utilities sector; Shares outstanding: 414.7 million; Market cap: $19.9 billion; Price-to-sales ratio:…