4 Top Green Energy Stocks for 2023

These green energy stocks are a solid deal, considering the amount of growth investors should expect in 2023 and beyond.

| More on:
green power renewable energy

Image source: Getty Images

Green energy stocks have proven to be some of the best bread-and-butter stocks investors can pick up lately. However, not everyone feels that way. While some have soared past expectations, others have plummeted. Yet I’d be remiss to say that those investors looking elsewhere are potentially missing out on a massive opportunity.

Investors should always follow the money, and governments and corporations alike are taking renewable energy straight to the bank. So, with that in mind, here are the top green energy stocks I’d consider in 2023.

Brookfield Renewable

If you’re looking for diversification, then I’d first recommend Brookfield Renewable Partners (TSX:BEP.UN). Brookfield owns green energy assets around the world. It’s also a green energy stock that’s been around for more than a decade, with its backer producing renewable energy since the 1890s!

Yet Brookfield stock has come down from its all-time highs around $70 per share. Now, shares are down about 16% year to date, and it trades at just 1.61 times earnings. Not only can you claim value, but you can lock up the company’s 4.85% dividend yield as well for decades of returns and passive income.

Northland Power

If you’re looking for a company that can pay you handsomely to own it, I’d go with Northland Power (TSX:NPI). In fact, Northland stock is one of the green energy stocks seeing an uptick recently because of its monthly dividend status. You can now lock up a yield at 3.18% as of writing, with shares still trading in value territory at 13.52 times earnings.

Like Brookfield, it also has been around for decades, though it specifically focuses on offshore wind farms. I wouldn’t count this against it, as offshore wind could be one of the top renewable energy sources in the future, given you don’t need to take arable land to receive more power. So, again, if you’re looking for green energy stocks and passive income, this is a solid choice in 2023.

Cameco

If growth is more your territory, I would certainly consider Cameco (TSX:CCO). Cameco stock is a green energy stock in the uranium sector, leading the charge in terms of production around the world. In fact, the main worry is that it will run out of uranium to produce!

Until then, investors will likely continue to see this company thrive over the next decade, with governments throwing money at uranium companies to power reactors. Shares of Cameco stock are already up 16% in the last month alone, though it is expensive, trading at 112.6 times earnings as of writing. Even so, I’d consider it as long as you’re willing to hold onto it for the next few years or more for unreal growth.

Canadian Utilities

This one’s an oldy but a goody. I would certainly look to Canadian Utilities (TSX:CU) if you’re simply nervous about investing in green energy stocks. Utilities are set to continue climbing in use, with a solid move over to clean energy production already underway.

In terms of Canadian Utilities, you get access to the clean energy production while also receiving the benefits of the natural gas transition. Plus, it’s the only Dividend King on the TSX today! So, you can look forward to growing dividends for decades from this company. Shares trade at just 16.74 times earnings as well, with a 4.85% dividend yield to lock up.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Energy Stocks

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, February 2

More corporate earnings reports could give further direction to TSX stocks today.

Read more »

oil and gas pipeline
Energy Stocks

Better Buy: Suncor Stock or Enbridge?

Amid the favourable environment, would you be better off investing in ENB or SU energy stock right now?

Read more »

Electric car being charged
Energy Stocks

Your Play to Get in on the 2023 EV Boom

Here's why Magna International may be the best way for Canadian investors to ride the EV boom.

Read more »

HIGH VOLTAGE ELECRICITY TOWERS
Energy Stocks

Algonquin Power & Utilities Stock Just Hit 52-Week Lows: Is it a Good Stock to Buy? 

Algonquin Power & Utilities (TSX:AQN) is trading near its seven-year low after dividend and outlook cuts. Is it a buy…

Read more »

tsx today
Energy Stocks

TSX Today: Why Canadian Stocks Could Fall on Tuesday, January 31

Despite the expected weakness in stocks today, the TSX index is on track to end the first month of 2023…

Read more »

Oil pumps against sunset
Energy Stocks

5 Things to Know About ARC Resources Stock in January 2023

Should you buy ARX stock?

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 Energy Stocks That Could Hold Up if Oil Prices Turn

Suncor Energy (TSX:SU) and Cenovus Energy (TSX:CVE) are great energy stocks that could continue higher through 2023.

Read more »

oil tank at night
Energy Stocks

2 Sub-$3 TSX Energy Stocks I’d Buy in 2023

Here are two under-$3 TSX energy stocks you can buy in 2023 and hold for the long term.

Read more »