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Best ESG Stocks Within the Dow 30, Investors, and Earth day

On April 22, people from all over the world celebrate Earth Day, and this year marks the 51st anniversary of the annual celebrations. The history of Earth Day goes back to 2009 when the United Nations designated April 22, as “International Mother Earth Day”. So, on this day, it makes sense to have a look at the best ESG or environmental, social, and corporate governance stocks within the Dow 30. The issue of climate change continues to dominate the headlines for a long time. ESG matters have never before been more important to shareholders as well as for the governments.

As the interest in ESG stocks continues to grow, this topic became one of the main priorities for many companies. According to the Bank of America, 90% of companies in the S&P 500 publish corporate social responsibility (CSR) reports. And that’s not just because corporations are trying to become more eco-friendly. It turns out that taking ESG problems seriously is good for the bottom line. In other words, companies have the opportunity to make more money thanks to this approach.

Members of the Dow Jones Industrial Average started to realize the importance of ESG matters. Nonetheless, only a third of Dow’s constituents rank as ESG leaders in the respective industries.

ESG stocks and interesting details

The first of Dow’s AA-rated environmental, social, and corporate governance stocks is American Express. The strong side of American Express is the company’s outsized long-term growth prospects. In fact, Wall Street expects the company to deliver average annual earnings per share (EPS) growth of more than 40% over the next three to five years.

Warrant Buffett knows how to handle various stocks. He first bought shares in the firm in 1963 and remains its biggest shareholder to this day. Buffett’s decision shows his position regarding American Express.

Another interesting company is Amgen, which replaced Pfizer in the Dow in 2020. This company got an AA ESG rating from MSCI. What puts this company among the top ESG stocks are its industry-leader rankings for human capital development, access to healthcare, etc. The bottom line is that it compares very favorably against industry peers on ESG matters.

CISCO Systems is also a great option. Its rating of AA puts it in a fairly elite company within the technology, hardware, storage& peripherals industry. Only about a fifth part of the industry scores a rating as high as a San Jose-based company.

When talking about the best ESG stocks, it is hard not to mention Coca-Cola. The company is among the best ESG stocks in the Dow. Coca-Cola is a leader among 53 companies that operate in the same industry. The energy drinks giant stands out for high scores on packaging materials and waste, health and safety, and product carbon footprint.

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