How To Earn $1,000 Per Month From ESG Investing (2024)

Jing Pan

·3 min read

In recent years, environmental, social and governance (ESG) investing has surged in popularity, reflecting a global shift toward responsible and sustainable financial decisions.

As concerns about climate change, social justice and corporate governance continue to grow, many are turning to ESG investments like renewable energy companies, not just as an ethical choice but as a smart financial one.

Like all stocks, ESG equities can exhibit volatility based on market dynamics, industry trends and global events. But some ESG-focused companies, especially established ones in sectors like renewable energy or sustainable infrastructure, regularly pay dividends to their shareholders.

This means that even in periods of price fluctuation, investors can still realize a return on their investment through dividend payouts. Such consistent dividend distributions can provide a cushion against short-term market uncertainties and enhance long-term total returns for investors.

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To illustrate how this dynamic operates in the ESG world, here's a look at NextEra Energy Inc. (NYSE:NEE).

NextEra Energy is a global leader in the renewable energy sector, with a diversified portfolio that includes a substantial emphasis on wind and solar power generation. Based in Juno Beach, Florida, the company operates through multiple subsidiaries, including Florida Power & Light Co., which serves millions of customers in Florida, and NextEra Energy Resources LLC, which is the world's largest producer of wind and solar energy.

Shares of NextEra Energy have not been hot commodities lately — they are down 20% over the past month.

But Morgan Stanley analyst David Arcaro sees a rebound on the horizon. The analyst recently reiterated an Overweight rating on NextEra Energy with a price target of $91. Considering that shares currently trade at $54.78, the price target implies a potential upside of 66%.

With NextEra Energy, investors can also collect dividends.

Passive Income From ESG

On Friday, NextEra Energy's board of directors declared a quarterly dividend of 46.75 cents per share. At the current share price, that gives the stock an annual dividend yield of 3.4%.

If you want to collect $1,000 per month from the company, you are looking at $3,000 per quarter. And that means you would need 6,417.11 shares of the company. This is calculated by dividing the $3,000 by the per share quarterly payout of $0.4675.

And because NextEra Energy currently trades at $54.78 per share, 6,417.11 shares would mean about $351,529 worth of the stock.

If you aim for a smaller target of earning $200 per month — or $600 per quarter — you would need 1,283.42 shares ($600/$0.4675) or $70,306 worth of NextEra Energy stock (1,283.42 x $54.78).

Remember, stocks can fluctuate wildly, and even top analysts aren’t right 100% of the time. So always conduct comprehensive research and due diligence before diving in.

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This article How To Earn $1,000 Per Month From ESG Investing originally appeared on Benzinga.com

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How To Earn $1,000 Per Month From ESG Investing (2024)

FAQs

How much money do I need to invest to make $1000 a month? ›

The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets.

Can you make money from ESG? ›

So, if you invested in an exchange-traded fund like ESGV—hardly the only U.S. stock focused ESG that has outperformed the S&P 500 Index in recent years—you'd be putting your money to work in companies with strong ESG scores as well as earning a decent return on your investment.

How can I turn $1000 into $10000 fast? ›

6 Ways to Turn $1000 into $10000
  1. Invest in Real Estate.
  2. Invest in Stocks and ETFs.
  3. Get Out of Debt Now.
  4. Start an Online Business.
  5. Retail Arbitrage.
  6. Invest in Yourself.
Jan 23, 2024

What are the average returns for ESG investing? ›

Globally, ESG Leaders earned an average annual return of 12.9%, compared to an average 8.6% annual return earned by Laggard companies. This represents an approximately 50% premium in terms of relative performance by top-rated ESG companies.

How to make 1k a month passively? ›

Passive Income: 7 Ways To Make an Extra $1,000 a Month
  1. Buy US Treasuries. ...
  2. Rent Out Your Car. ...
  3. Rental Real Estate. ...
  4. Publish an E-Book. ...
  5. Become an Affiliate. ...
  6. Sell an Online Course. ...
  7. Bottom Line.
Mar 29, 2023

How to make $2,500 a month in passive income? ›

  1. 14 Proven Ways to Make $2,000-$3,000 Per Month in Passive Income. ...
  2. Build a High-Earning Blog. ...
  3. Self-Publish Books on Amazon Kindle. ...
  4. Invest in a High Cash Flow Duplex House. ...
  5. Fund Real Estate Projects with Crowdfunding. ...
  6. Invest in Triple Net Lease Properties. ...
  7. Launch Multiple Affiliate Websites.
Jan 2, 2024

Does ESG investing really work? ›

ESG funds have similarities to other funds

While the results from these time periods have been generally encouraging for ESG funds as a whole, we don't see convincing evidence that ESG funds are reliably better than non-ESG funds.

Are ESG funds worth it? ›

The success of ESG investing depends in some part on government policy. If legislators make a law which rewards ethical investing decisions, the funds can benefit greatly. A good example is policies which incentivise electric car purchases.

How do I get started with ESG investing? ›

We've broken down the initial legwork of an ESG strategy into 6 simple steps.
  1. Get Management Buy-In.
  2. Determine Most Material Topics.
  3. Understand ESG Scores.
  4. Report on ESG Disclosure Frameworks.
  5. Analyze Competitors.
  6. Communicate With Investors.

How can I flip $1000 dollars fast? ›

6 Top Tips for How To Turn $1,000 Into $10,000
  1. Invest In Yourself. It's possible that you could learn something that will allow you to increase your earning potential by $10,000 per year. ...
  2. Buy Products and Resell Them. ...
  3. Start a Side Hustle. ...
  4. Start a Home Business. ...
  5. Invest In Small Businesses. ...
  6. Invest In Real Estate.
Jun 7, 2023

How can I double my $1000? ›

One of the easiest ways to double $1,000 is to invest it in a 401(k) and get the employer match. For example, if your employer matches your contributions dollar for dollar, you'll get a $1,000 match on your $1,000 contribution.

How to make $1,000 ASAP? ›

How to make $1,000 fast
  1. Sell stuff you already own.
  2. Deliver food.
  3. Pick up a part-time job.
  4. Rent out unused space.
  5. Start freelance writing.
  6. Try affiliate marketing.
  7. Drive for a ridesharing service.
  8. Find odd jobs.
Jan 16, 2024

Where is ESG investing most popular? ›

It is more and more becoming the standard in the investment industry, especially in Europe, where most of the sustainable fund's assets are concentrated. The most common approach to investing sustainably is through ESG integration - by explicitly and systematically factoring ESG issues into the investment decision.

Why is ESG investing so popular? ›

ESG is popular due to the following factors:

It helps regulators to get information and process it as well. 3. Investors are increasingly choosing to invest in companies that align with their values and goals.

What is the ESG rule in investing? ›

WASHINGTON, D.C., February 28, 2023

The Biden administration's new rule—which enables and encourages retirement fiduciaries to consider environmental, social, and governance (ESG) factors—will allow activist investors to funnel retirees' savings into progressive, left-wing causes.

How much dividend stock do I need to make $1000 a month? ›

To have a perfect portfolio to generate $1000/month in dividends, one should have at least 30 stocks in at least 10 different sectors. No stock should not be more than 3.33% of your portfolio. If each stock generates around $400 in dividend income per year, 30 of each will generate $12,000 a year or $1000/month.

How much do I need to invest to get $2000 a month? ›

Earning $2,000 in monthly passive income sounds unbelievable but is achievable through dividend investing. However, the investment amount required to produce the desired income is considerable. To make $2,000 in dividend income, the investment amount and rate of return must be $400,000 and 6%, respectively.

How much will I have if I invest $500 a month for 10 years? ›

What happens when you invest $500 a month
Rate of return10 years30 years
4%$72,000$336,500
6%$79,000$474,300
8%$86,900$679,700
10%$95,600$987,000
Nov 15, 2023

How much money if I invest $100 a month? ›

Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100. If you make a monthly investment of $200, your 30-year yield will be close to $400,000.

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