2022 has finally started, and investors are rearing and ready for another year of trading on the stock market. If you have been setting aside some cash to begin investing in the stock market with a strong start, it is time to think about where to deploy your investment capital to hit the ground running.
2021 was an excellent year for stock market investors, despite the persistent pandemic-related challenges. Barring the volatility in the last few weeks of 2021, the stock market posted significant gains. At writing, the S&P/TSX Composite Index is up by over 21% year to date, and it is still down by over 2% from its all-time high on November 12, 2021.
2021 was full of pandemic-related events impacting investment returns. Among the industries that were sold off significantly in 2021 was the green energy sector. If you’re just starting investing, you should know that the selloff in the green energy industry is more of an opportunity than something to be scared of as a new investor.
Today, I will discuss two green energy stocks that could be an excellent addition to your portfolio as a newcomer to the stock market investing world.
Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is one of the top assets to consider if you want to gain diversified exposure to the green energy industry. The $12.43 billion market capitalization giant is a publicly traded limited partnership that owns and operates a globally diversified portfolio of renewable power assets. It presents an ideal opportunity to invest in this space that is better than most of its closest peers.
At writing, Brookfield Renewable stock is trading for $45.18 per share, and it is down by 20% year to date. The stock boasts a juicy 3.43% dividend yield that you can lock into your portfolio today. Between its dividend payouts and the capital gains that it can post as its valuation recovers, Brookfield Renewable stock could be an excellent addition to your portfolio.
Northland Power (TSX:NPI) is another market-leading stock in the green energy industry. The $$8.56 billion market capitalization company is a power producer headquartered in Toronto. The company develops, builds, owns, and operates clean and green energy infrastructure assets diversified worldwide.
Northland Power has been one of the fastest-growing entities in the renewable energy industry, and it has posted a performance similar to that of Brookfield Renewable stock through most of 2021. Despite its impressive performance, NPI stock has been on the decline for most of 2021.
At writing, NPI stock is trading for $37.82 per share, and it is down by 16.75% year to date. It boasts a juicy 3.17% dividend yield.
Green energy has always been seen as an excellent long-term investment. Governments worldwide are shifting focus on phasing out traditional energy sources in favour of renewable energy.
Renewable energy accounts for roughly less than a third of global energy production but accounts for just over a 10th of energy consumption. It means that despite the rapid growth in recent years, the green energy industry has a long way to go before this space becomes saturated.
2021 was a year in which most of these stocks underperformed, but it is the best industry to scour for long-term wealth growth opportunities. Brookfield Renewable stock and Northland Power stock are two undervalued investments that could be ideal for this purpose.