So I'm interested in many things, but primarily passive income! I love earning steady money without putting in any work. This can be very easy in the stock market! It is historically a great source of passive income for the wealthy worldwide, but it has some very old gears running it. So many of the best passive income stocks you will find are bad companies doing bad things.
We all have our own ethics and what one person believes to be moral another may not. I choose to attempt to earn my passive income as ethically as possible according to my own and that means a whole slew of companies that have been paying dividends reliably for decades is off limits to me. They are numerous and I won't bother listing them, but the sector where this problem is most prevalent is in Energy! Most of the large dividend paying energy companies are Coal or Oil based and that makes it hard for me to be socially responsible while investing in this market.
There's a whole slew of newer companies springing up offering up solar, and wind projects to investors and these are the majority of "socially responsible" energy plays out there but I've stumbled across another that I don't think people are catching on to.
And maybe even Propane Accessories? So if you're like me you will be shocked to discover that propane is even a relatively clean energy source. I always assumed it fell into the camp of oil and was inherently "bad" to make use of. But I was surprised to find out I was wrong. Now let me be upfront, if you google "Propane Clean Energy Source" you will get a slew of majorly biased sources, most of them being propane companies! So I'm omitting all of those websites and using a source I personally believe to be more accurate. Wikipedia. Yeah that's right! Take that all you high school teachers who told me it was a bad source! At least Wikipedia can be edited by both sides of the coin! As well as a few newspapers and sources that I find to be reliable.
So why is propane "not so bad?" There are a few reasons and I won't go into all of them, but I will try to hit some interesting points. First and foremost it is noticeably cleaner and results in less engine wear due to carbon deposits, without diluting engine oil (often extending oil-change intervals) for motors. So it creates longer lasting vehicles, and reduces waste by delaying the end-of-life of vehicles. Propane-powered vehicles create 60-70% less smog and up to 26% less greenhouse gas emissions than a comparable conventional gasoline vehicle. And compared to gasoline, propane produces about 20% less nitrous oxide and as much as 60% less carbon dioxide Propane cuts emissions of toxins and carcinogens by up to 96% (SW Research Institute). So generally it is significantly better for air quality than gasoline. There is a reason that propane is used worldwide for forklifts and other indoor vehicles!
International ships can even reuse propane from ocean-going ships that transport LPG because as the sun evaporates the propane during the voyage, the international ship catches the evaporating propane gas and feeds it into the air intake system of the ship's diesel engines. This reduces bunker fuel consumption and the pollution created by the ships.
In my research I even discovered that efforts are being made to produce Propane using renewable energy. The majority of propane produced today still has some fossil fuels involved in it's production, while not nearly as much as Gasoline it is still a substantial amount. But there are companies out there who have produced propane using bacteria!
"That's all fine and dandy, but damn Wantandable! WHERE IS THE PASSIVE INCOME? I don't care about this other stuff!"
Okay FINE. We've finally reached that point. Superior Plus (SPB). The Superior Plus Corporation is a Canadian-based company that engages in the energy distribution, and chemicals business. The energy distribution operating segment provides distribution, wholesale procurement and related services in relation to propane. Superior Plus' stock is currently trading at $10.85 CAD, with a 5 year low recently during the COVID19 epidemic of around $6 and a 5 year high of around $13.50
The stock price isn't really why we are here though, although it is very relevant! As you want it to remain relatively stable while you earn your dividends to ensure you are earning the money you deserve. They pay you monthly at a current rate of $.06 per share simply for holding onto their stock. That's around a 6% yearly rate at it's current valuation! Way better than any bank account would get you. And there is evidence that this company will pay more and more as time goes on. Since 1996, the company has paid more than $2 billion in dividends, roughly equal to its entire market cap today.
So how did they get onto my radar? Well in the last week they've secured a large investment from a very successful multi-national organization. Brookfield Asset Management (BAM).
Brookfield is gigantic and extremely successful. They own over $500 billion in assets, in 30 countries, and have been owning and operating assets for over 100 years. And just recently they purchased 15% of Superior Propane. Personally I believe it's a good idea to follow the money. The rich stay rich by wisely investing and BAM has seen this as a wise investment at current prices. I'm certainly not smarter than the people who run Brookfield and so I'm following along.
The reality is propane is still a growing industry. It's use has room to increase in the upcoming world where everyone is ethically hyper vigilant. And if you don't think that hyper vigilance will rear it's head in the stock market over the coming decades as young people grow older and inherit the wealth of previous generations, you're not paying attention. It's very possible to be on the right side of history and make money at the same time, it just takes a bit more effort! And I think Superior Plus is a company to keep an eye on. Don't waste your moneys potential by parking it in a savings account, put it to work!