4 Green Energy Stocks to Buy This St. Patrick’s Day

Canadian investors should look to snatch up top green energy stocks like TransAlta Renewables Inc. (TSX:RNW) and others on St. Patrick’s Day.

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published March 17, 2022 3:00 pm EDT

Happy St. Patrick’s Day, Foolish readers! In the spirit of the day, I want to look at four of the top GREEN energy stocks on the Canadian market. Why four? Uh, let’s just say it’s in honour of the four-leaf clover. Anyway, let’s dive in.

This top green energy stock offers a solid dividend

Algonquin Power & Utilities (TSX: AQN)(NYSE: AQN) is an Oakville-based company that owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada, the United States, Chile, and Bermuda. Shares of this green energy stock have increased 4.8% in 2022 as of mid-morning trading on March 17. The stock is down 4.8% from the previous year.

The company unveiled its fourth-quarter and full-year 2021 earnings on March 3. Total revenue climbed 36% year over year to $2.28 billion in 2021. Meanwhile, adjusted EBITDA increased 24% to $1.07 billion. Moreover, adjusted net earnings were reported at $449 million, or $0.71 on a per-share basis, in 2021 — up 23% and 11%, respectively, from the previous year.

Shares of this green energy stock are trading in favourable value territory compared to its industry peers. It offers a quarterly dividend of $0.171 per share, which represents a 4.5% yield.

Here are two green energy stocks that offer big income

Investors chasing income in the middle of March should look to green energy stocks like TransAlta Renewables (TSX: RNW). This Calgary-based company develops, owns, and operates renewable power-generation facilities. The stock has dropped 2.7% in the year-to-date period. Its shares have declined 8% from the prior year.

TransAlta released its final batch of 2021 earnings on February 24. It posted adjusted EBITDA of $463 million, which was mostly in line with the previous year. Meanwhile, earnings before income taxes jumped 23% year over year to $150 million.

This green energy stock is also trading in favourable value territory with a price-to-earnings (P/E) ratio of 34. Better yet, it last paid out a monthly dividend of $0.078 per share. That represents a strong 5.1% yield.

Capital Power (TSX: CPX) is another income-oriented green energy stock I’d look to target today. Its shares have jumped 4.9% so far in 2022. The stock is up 14% year over year.

In its final 2021 earnings report, the company saw total revenue rise marginally to $1.99 billion. Meanwhile, adjusted EBITDA was reported at $1.12 billion — up from $955 million in 2020. Capital Power still offers solid value at the time of this writing. Moreover, it offers a quarterly dividend of $0.547 per share, representing a tasty 5.3% yield.

One more stock to snatch up today

Northland Power (TSX: NPI) is the fourth and final green energy stock I’d look to snatch up on St. Patrick’s Day. This stock has climbed 14% so far this year. Its shares are still down 3.5% compared to the same period in 2021.

The company released its fourth-quarter and full-year 2021 earnings on February 24. Sales rose 2% from 2020 to 2021, reaching $2.09 billion. Meanwhile, gross profit increased 1% to $1.85 billion. Northland Power also offers a monthly distribution of $0.10 per share, which represents a 2.8% yield.