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2 green stocks I’d buy with £10k and look to hold for 10 years

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Responsible investing is becoming more important to today’s share investor. With this in mind here are two green stocks I’d buy now and cling onto for 10 years.

Riding the meat-free revolution

I recently explained why demand for Beyond Meat’s products is rising as concerns over animal welfare and the broader environment grow. But of course this isn’t the only reason why plant-based food is rising. Another is lingering concerns over the link between meat and heart disease, cancer, and diabetes.

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And this is where green stock Tattooed Chef (NASDAQ: TTCF) comes in. Not only does this US share manufacture frozen plant-based foods across a variety of categories. It also offers consumers the choice of non-genetically modified and organic products. Latest financials from the company showed revenues rise 59% in the three months to March. And sales of its own-branded foods more than doubled from the corresponding 2020 period.

Turnover at Tattooed Chef is soaring as it expands its number of distribution points and rolls out new product lines. But bear in mind that the meat-free market is becoming increasingly competitive as niche firms like this, along with established food manufacturers, try to grab a slice of the action. This US share could well have a hard time trying to deliver on its exceptional promise.

Another top green stock

I believe getting exposure to renewable energy is another good idea for share investors. Several green stocks listed on the London Stock Exchange operate in this field. And Greencoat Renewables (LSE: GRP) is one that’s on my radar because of its immense value. Earnings here are expected to soar 234% in 2021, leaving the wind farm operator trading on a forward price-to-earnings growth (PEG) ratio of just 0.1. Any reading below 1 suggests that a stock could be undervalued.

What’s more, Greencoat Renewables boasts a monster 5.1% dividend yield for this year. The defensive nature of its operations, and consequently its great profits visibility, leads me to believe the UK share will keep paying above-average dividends too. Of course, dividends are never guaranteed.

Research suggests that demand for Greencoat Renewables’ services could go from strength to strength. A report from the International Energy Agency said that “renewable sources of electricity such as wind and solar grew at their fastest rate in two decades in 2020”. But this wasn’t all. The organisation predicted that “[growth rates] are set to expand in coming years at a much faster pace than prior to the pandemic” too.

I think that Greencoat Renewables, which operates a slew of wind farms in Ireland and a handful in France, is a great way to play growing demand for low-carbon energy. Though it’s important to remember that the business of energy generation can be extremely costly. And this green stock is at the mercy of future changes to environmental legislation too. Still, at current prices it’s a UK share that’s high on my investing wishlist.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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