As countries across the globe are becoming more conscious of the environmental impact of fossil fuels, the demand for renewable energy is growing fast. This could just be the beginning of a great era for renewable energy, as this demand is likely to strengthen further in the coming years. Given that, it could be a wise decision for Canadian investors to buy some quality renewable energy stocks today that can help them benefit from this emerging trend.
In this article, I’ll highlight two of the best Canadian renewable energy stocks with dividends I find worth buying in February 2023.
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Brookfield Renewable stock
Brookfield Renewable Partners (TSX: BEP.UN) is one of the most attractive renewable energy stocks in Canada right now. This Hamilton, Bermuda-headquartered firm currently has a market cap of $10.2 billion. After losing nearly 38% of its value, its stock has started 2023 on a positive note by rising 7.6% year to date to $36.89 per share.
If you don’t know it already, Brookfield Renewable has a well-diversified portfolio of renewable power assets worth about US$68 billion globally, including hydroelectric, wind, and solar. With this, the company currently has a renewable power capacity of 24 gigawatts (GW).
In the next five years, Brookfield Renewable plans to invest more than US$6-US$7 billion in high-quality renewable power assets to further expand its global presence and strength in its portfolio. That’s why you can expect it to hugely benefit from the growing demand for renewable energy, which should help its financial growth trends improve significantly and share prices soar.
In addition, Brookfield Renewable stock also offers an attractive annual dividend yield of 4.9%, making its stock even more attractive for dividend investors.
Northland Power stock
Northland Power (TSX: NPI) could be another fundamentally strong renewable energy-focused Canadian stock to consider right now. It’s a Toronto-headquartered power producer with a market cap of $8.3 billion, as its stock currently trades at $33.20 per share with about 10.6% year-to-date losses. NPI stock offers a 3.6% annual dividend yield at the current market price.
The company generates most of its revenue from its offshore wind segment. Besides that, power generation through efficient natural gas and onshore renewables also make up a large portion of Northland Power’s total revenue. Besides its home market, the Netherlands, Germany, and Latin America are some of its key markets.
The ongoing strength in Northland Power’s fundamentals could be understood by the fact that it has consistently been beating Street analysts’ revenue and earnings estimates for the last four consecutive quarters, despite facing macroeconomic challenges. In the first three quarters of 2022, the company’s sales rose 24.4% year over year to $1.8 billion with the help of continued strength in energy prices across Europe.
Last year, Northland Power was awarded a 2.3 GW project in Scotwind offshore wind lease auction and a 500-megawatt project in round three of the Taiwan offshore wind auction. Besides these projects, the company’s also pursuing further offshore wind and solar deployment opportunities across the globe, which can help it accelerate its financial growth further in the coming years. Given these positive factors, you can expect NPI stock to soar and deliver outstanding returns on your investments in the long run.
