Green Investing - the next big thing!

Investing in companies touting green and eco-friendly technology and products is the next big thing in wall street. A recent article in Kiplinger's magazine points out how younger generation is investing in stocks and funds that focus on sustainable, eco-friendly technologies and companies. They're investing in environmentally friendly stocks -- either directly or through funds -- to make money.

Contrary to popular belief, environmental stocks do provide healthy returns as evidenced by rising stocks of companies like United Technologies, a green double play. It has been developing more-efficient helicopters and jet engines, as well as such innovative products as gearless elevators that use half the power of traditional lifts. The industrial conglomerate has also reduced its own energy consumption by 2% a year for ten years and intends to accelerate those savings. Meanwhile, the company has boosted its earnings 14% annually since 2002. Its stock price has doubled, and so have its cash dividends.

One of the nice things about green investing is that the universe of potential investments is large and wide. Green stocks encompass a variety of sectors, company sizes and quality. Many potential investments are young, small and risky. But you can green up a portfolio with a package of proven blue chips, such as General Electric (symbol GE), Johnson Controls (JCI) and United Technologies (UTX). All three work with developers to cool, heat and light buildings more efficiently, among other things. That's important because buildings are responsible for about one-third of the world's energy consumption.

Read more on green investing here.