Are climate change stocks risky investments?

Climate change stocks can be risky investments. Some companies focus on still unproven technologies or those that aren't commercially viable without government assistance. Others don't have the financial capacity to fund the heavy investments needed to build sustainable businesses to battle climate change. However, not all climate change stocks are risky. Many have matured to the point where they can fund their operations and growth through internally generated profits.

Can climate change stocks provide dividends?

Yes, some climate change stocks can provide dividends. For example, several companies operate business models that generate stable cash flow through the sale of renewable power or other services under long-term contracts and government-regulated rate structures. That provides them with the money to invest in their businesses and pay dividends.

What companies are profiting from climate change?

Many companies are profiting from climate change, including Tesla, NextEra Energy, GE Vernova, Brookfield Renewable, and Constellation Energy. They are among the leaders in supporting renewable energy, electric vehicles, energy efficiency, and other forms of lower-carbon energy, all of which aim to make money while helping reduce the potential future impact of climate change.

What types of companies are considered climate change stocks?

Climate change stocks include companies involved in lower-carbon energy (e.g., solar, wind, battery storage), electric vehicles, sustainable agriculture, and other businesses that aim to reduce the potential future impact of climate change.

Where can I find resources and information on climate stock investing?

You can find resources on climate stock investing from research and data providers such as Sustainalytics, financial platforms like the BlackRock Investment Institute, financial news sites like The Motley Fool, and government agencies such as the EPA.

How can I diversify my climate stock portfolio?

You can diversify your climate stock portfolio by taking a basket approach (investing in a mini-portfolio of companies focused on combating climate change) or investing in a clean energy ETF.

Bars

A look at some of the companies leading the fight against climate change.

By Matthew DiLallo – Updated Apr 14, 2026 at 10:05 AM EST | Fact-checked by Frank Bass

Key Points

Climate change stocks could generate powerful total returns as they address global warming.
The top climate change stocks are investing in renewable energy and clean tech innovations.
The leading climate change stocks include Tesla, NextEra Energy, and Brookfield Renewable.

Climate change stocks are companies focused on reducing the economic and environmental impact of global warming. Rising temperatures are linked to more natural disasters, flooding, and other costly disruptions that can weigh on the global economy and markets.

Swiss Re estimates climate change could reduce global economic output by 11% to 14% by 2050, potentially wiping out up to $23 trillion in GDP. Risks like these are pushing governments and businesses to invest heavily in renewable energy, electric vehicles, and emerging climate technologies.

While tackling climate change requires a global effort, some companies are already leading the shift toward a cleaner economy. Here’s a closer look at several climate change stocks positioned to benefit from that transition.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Tesla (NASDAQ:TSLA)	$1.3 trillion	0.00%	Automobiles
Brookfield Renewable (NYSE:BEPC)	$7.6 billion	3.61%	Independent Power and Renewable Electricity Producers
NextEra Energy (NYSE:NEE)	$192.3 billion	2.52%	Electric Utilities
Constellation Energy (NASDAQ:CEG)	$105.6 billion	0.55%	Electric Utilities
GE Vernova (NYSE:GEV)	$267.1 billion	0.18%	Electrical Equipment

Data as of Apr 14, 2026. Showing 5 of 5 tickers.

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NASDAQ: TSLA

Tesla

Today's Change

(3.73%) $13.14

Current Price

$365.56

Key Data Points

Market Cap

$1.3T

Day's Range

$354.86 - $366.13

52wk Range

$222.79 - $498.83

Volume

1.5M

Avg Vol

62M

Gross Margin

18.03%

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Tesla (TSLA +3.60%) is on a mission to accelerate the global transition to sustainable energy. It has almost single-handedly driven the adoption of electric vehicles. The company is a leader in the sector, producing both luxury vehicles and more affordable cars. It also produces zero-emission semis, mid-sized SUVs, and trucks.

EVs are only part of Tesla's sustainable energy ecosystem. The company also manufactures an array of solar energy and battery storage products to increase renewable energy usage. It aims to make climate tech products more accessible and affordable to more people, helping to accelerate the adoption of clean transportation and energy production. One way it has done that is by bringing EV battery production in-house to reduce costs.

Tesla is also driving towards autonomy. It's investing heavily in autonomous driving technology to support its plans to launch a robotaxi. The company is also developing a humanoid robot (Optimus). These initiatives will help increase efficiency and reduce carbon emissions.

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2. NextEra Energy

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NYSE: NEE

NextEra Energy

Today's Change

(-1.20%) $-1.11

Current Price

$91.19

Key Data Points

Market Cap

$192B

Day's Range

$90.60 - $91.86

52wk Range

$63.64 - $96.20

Volume

137K

Avg Vol

9.8M

Gross Margin

36.20%

Dividend Yield

2.52%

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NextEra Energy (NEE -0.96%) is a global leader in producing energy from the wind and sun. It's also a world leader in battery storage. The electric utility is among the biggest in the U.S. and has a large-scale energy infrastructure business that operates clean energy generating assets, natural gas pipelines, and electricity transmission lines.

The company's focus on renewable energy has paid big dividends over the years. NextEra has increased its earnings per share at a 10% compound annual growth rate over the past decade, which is three times faster than its rivals. That's helped power above-average dividend growth and market-beating total returns.

NextEra Energy has a vast pipeline of lower-carbon energy development opportunities as it continues to lead in decarbonizing the power grid. The company's energy resources segment alone sees the potential to deploy between 76.6 gigawatts (GW) and 107.6 GW of new clean energy capacity from 2026 through 2032. That compares to its 43 GW of operating capacity in mid-2026. It's also investing in emerging climate tech, such as green hydrogen, which uses renewable energy to electrolyze water and produce emissions-free hydrogen. The fuel has a range of potential uses in the energy, industrial, and transportation sectors and could help further reduce emissions.

3. Brookfield Renewable

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NYSE: BEPC

Brookfield Renewable

Today's Change

(0.86%) $0.36

Current Price

$42.26

Key Data Points

Market Cap

$7.6B

Day's Range

$41.85 - $42.58

52wk Range

$26.16 - $45.18

Volume

12K

Avg Vol

1.2M

Gross Margin

26.62%

Dividend Yield

3.61%

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Brookfield Renewable (BEPC +0.86%) is a global leader in decarbonization. Its operations enable companies to avoid more than 250 million tonnes of carbon each year.

Brookfield operates one of the world's largest renewable energy platforms. It owns hydroelectric, wind (onshore and offshore), solar (utility-scale and distributed generation), and energy storage facilities across five continents. It primarily sells the power it produces under long-term contracts to users such as electric utilities and large corporate power buyers. The company is also a leading developer of renewable energy assets. It has over 275 GW of renewable power assets currently operating or under development.

The company also has a growing sustainable solutions platform. It has investments spanning carbon capture and storage, biofuels production, materials recycling, global nuclear services, solar panel manufacturing, and e-fuels.

Brookfield's global scale has made it a partner of choice for companies and governments seeking to achieve their carbon reduction goals. That's helping power above-average earnings growth. It expects to grow funds from operations (FFO) per share by more than 10% annually through 2031. That should support its plan to increase its dividend by 5% to 9% per year.

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NASDAQ: CEG

Constellation Energy

Today's Change

(1.31%) $3.81

Current Price

$295.53

Key Data Points

Market Cap

$106B

Day's Range

$289.82 - $297.00

52wk Range

$188.01 - $412.70

Volume

44K

Avg Vol

3.7M

Gross Margin

17.35%

Dividend Yield

0.55%

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Constellation Energy (CEG +1.22%) is the nation's largest producer of carbon-free energy. It has 55 GW of power-generating capacity from nuclear, natural gas, geothermal, hydro, wind, and solar facilities. The company provides its carbon-free energy to more than 27 million homes and businesses.

Constellation Energy is also helping jump-start the country's nuclear power renaissance. It's working to restart Three Mile Island Unit 1, which it shut down for economic reasons several years ago. However, technology giant Microsoft (MSFT +2.38%) signed a 20-year power purchase agreement for all 835 megawatts of the unit's capacity to support its cloud and AI power needs. Constellation also signed a 20-year nuclear power deal with Meta Platforms (META +4.59%) for 1.1 GW of power from its Clinton Clean Energy Center starting in mid-2027. These nuclear deals and other investments will power more than 20% compound annual earnings-per-share growth for Constellation Energy through 2029.

5. GE Vernova

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NYSE: GEV

GE Vernova

Today's Change

(1.02%) $10.12

Current Price

$1001.24

Key Data Points

Market Cap

$267B

Day's Range

$980.00 - $1005.00

52wk Range

$306.21 - $1007.38

Volume

23K

Avg Vol

2.8M

Gross Margin

20.28%

Dividend Yield

0.18%

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FAQs on climate change stocks

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Brookfield Renewable, Meta Platforms, NextEra Energy, and Tesla. The Motley Fool has positions in and recommends Constellation Energy, GE Vernova, Meta Platforms, Microsoft, NextEra Energy, and Tesla. The Motley Fool recommends Brookfield Renewable. The Motley Fool has a disclosure policy.

Best Climate Change Stocks for 2026 and How to Invest

A look at some of the companies leading the fight against climate change.

Key Points

Key Data Points

2. NextEra Energy

Key Data Points

3. Brookfield Renewable

Key Data Points

Key Data Points

5. GE Vernova

Key Data Points

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FAQs on climate change stocks

Are climate change stocks risky investments?

Are climate change stocks risky investments?

Can climate change stocks provide dividends?

Can climate change stocks provide dividends?

What companies are profiting from climate change?

What companies are profiting from climate change?

What types of companies are considered climate change stocks?

What types of companies are considered climate change stocks?

Where can I find resources and information on climate stock investing?

Where can I find resources and information on climate stock investing?

How can I diversify my climate stock portfolio?

How can I diversify my climate stock portfolio?

About the Author

Read Next

Stocks Mentioned

Premium Investing Services

FAQs on climate change stocks

Are climate change stocks risky investments?

Are climate change stocks risky investments?

Can climate change stocks provide dividends?

Can climate change stocks provide dividends?

What companies are profiting from climate change?

What companies are profiting from climate change?

What types of companies are considered climate change stocks?

What types of companies are considered climate change stocks?

Where can I find resources and information on climate stock investing?

Where can I find resources and information on climate stock investing?

How can I diversify my climate stock portfolio?

How can I diversify my climate stock portfolio?

Best Growth Stocks to Buy in 2026

Best ESG ETFs to Buy in 2026

When to Sell Stocks: 5 Reasons to Sell a Stock

Best Liquefied Natural Gas Stocks of 2026 and How to Invest in Them

Key Data Points

1. Tesla

2. NextEra Energy

4. Constellation Energy

Benefits and risks of investing in climate change stocks

Should you invest in climate change stocks?

Related investing topics

FAQ

5 top climate change stocks for 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

3. Brookfield Renewable

5. GE Vernova

How to invest in climate change stocks