Money & Investing – Banks.com

It’s Earth Day, and I thought that now would be a good time to mention some companies that might be able to help green up your investment portfolio — in more ways than just one.

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Green companies are those that have a track record of trying to improve their sustainability and make an effort to behave in an environmentally friendly way. While it is virtually impossible to be completely sustainable, there are companies making the effort. These companies are listed on the Dow Jones Sustainability United States Index (if you are interested in domestic companies). While you can invest in the entire index, you can also invest in individual companies that appear on the index. Some of these green companies are doing reasonably well right now, with capitalization and a solid fundamental base that provides some hope that there is room to grow (albeit at a staid pace) in the future. Investopedia offers five good options for green investing:

1. General Electric has been making efforts in the recent past to reduce its waste and water usage. Additionally, the company tries to market energy efficient products. And, GE is a venerable blue chip with a capitalization of $105.1 billion and proven staying power.
2. Coca Cola is recognized as a company making sustainability efforts. Not to mention the fact that the company has been successful for years and years. You won’t earn a ton, but Coke is on sale right now, and it could be a good time to buy a solid company with a reputation for being socially responsible.
3. Gap is making efforts to avoid environmentally harmful sweat shops and underpaid labor. With a market cap of $9.1 billion, the company has a decent amount of cash. And, as the economy improves, more people will be likely to buy the clothes.
4. General Mills has been seeing continued success through the recession. The company has been actively taking steps to reduce its energy use and the company uses recycled paper in its packaging. Prospects for growth remain strong from General Mills.
5. Intel just reported reasonably strong earnings for Quarter 1. Not only that, but the company is considered one of the greener companies that you can invest in. A good market cap of $81.7 billion means that there is plenty of cash in Intel. And the computer chip maker is likely to see future gains as the economy improves and computer demand picks up.

Can you think of any other environmentally friendly companies to invest in?

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.