5 Best Environmental Stocks to Invest In

2. Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM)

Number of Hedge Fund Holders: 76

Chip-maker Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) ranks 2nd on the list of the 12 best environmental stocks to invest in. In 2019, the company cut 17% of its greenhouse gas emissions and 65% of fluorinated greenhouse gas emissions, making it an industry leader in low-carbon manufacturing. In addition, the company purchases renewable energy and installs solar-powered systems in its facilities. Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) currently pays an annual dividend of $1.81 per share with a 1.54% dividend yield. TSM stock has offered more than 107% returns to investors in the past twelve months.

The company has a market cap of $604 billion. The company’s first-quarter revenue came in at $12.92 billion, including an operating income margin rate of 41.5%. As of July 2, Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) shares traded at $118.91 and have a P/E ratio of 31.84. On June 22nd, Argus Research initiated coverage on Taiwan Semiconductor Manufacturing Company Limited with a Buy rating and $150 per share price target. 

At the end of the first quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $10.9 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), up from 72 the preceding quarter worth $11.8 billion.

ClearBridge Investments, in its Q1 2021 investor letter, mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) and shared their insights on the company. Here is what the fund said: 

“While we maintain high conviction in many of the emerging and secular growth names in the portfolio,– we continue to hold Taiwan Semiconductor, the world’s largest foundry. Semiconductor shortages, caused by a combination of years of capacity reductions, COVID-19 lockdowns, and better than expected rebounds in industries like autos, will cause short-term revenue pressure but are allowing companies to exert pricing power as they race to replenish depleted inventories.”