When it comes to investing, there are pros and cons to buying stocks in each industry. With that being said, though, there are certainly some industries that you’ll definitely want exposure to, such as green energy stocks — easily some of the best investments to buy now.
Bank stocks and real estate stocks are also great examples. There are just some industries that offer consistent and reliable long-term growth potential, making them highly popular industries to invest in.
Renewable energy generation is attractive, because it’s a defensive industry, first and foremost. The demand for power is constantly growing; plus, these producers sign long-term power-purchase agreements (PPAs) to reduce risk.
In addition, renewable energy generation is also an industry with decades of growth potential, making high-quality green energy stocks some of the best to buy now and hold for years.
If you’re looking to add exposure to green energy stocks, here are two of the best investments that you can buy today.
One of the best green energy stocks to buy now while it’s discounted
Northland Power (TSX:NPI) has been one of the best green energy stocks to buy for the long haul, and with the stock trading at a 52-week low, now is a perfect time to consider gaining exposure.
Northland has over 30 years of experience successfully developing, constructing and operating independent power projects, while delivering impressive returns for investors.
The stock’s operations are well diversified with assets in North America, South America, Europe, and Asia.
Furthermore, in addition to its existing portfolio of assets, where it has 2,598 megawatts of net generating capacity, Northland has another 2,068 megawatts of net capacity under construction or advanced development — a major reason why it’s one of the best green energy stocks to buy now.
Plus, with the majority of its debt being fixed rate and fixed term, Northland has less risk of being impacted negatively by interest rate hikes.
Therefore, it’s a lower-risk investment with significant long-term potential. In 2023, it expects to report earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.2 to $1.3 billion. Plus, it expects that its EBITDA will grow at a compound annual growth rate (CAGR) of 7-10% from 2023 to 2027.
If you’re looking for a high-quality green energy stock to buy now, Northland is certainly one of the best to consider.
A massive renewable energy stock with global operations
In addition to Northland, Brookfield Renewable Partners (TSX:BEP.UN), the largest green energy stock in Canada, is another high-quality stock to buy now.
Brookfield has a global portfolio of assets, with roughly 9,400 megawatts of net generating capacity in operation and another 3,650 megawatts of net generating capacity in construction advanced development.
Furthermore, Brookfield’s massive operations are spread across five continents, where it manages a diverse portfolio of hydro, wind, solar, and distributed energy.
And although both green energy stocks are some of the best to buy now, Brookfield is certainly better for dividend growth.
Brookfield is constantly increasing the distribution it pays to investors. In fact, the distribution has increased at a CAGR of 6% since its inception in 2000.
Furthermore, Brookfield manages to keep its distribution sustainable, but it also aims to increase that distribution between 5% and 9% each year. Today, that distribution offers a compelling yield of 5%.
Another major benefit of investing in Brookfield Renewables is that while inflation impacts almost every company negatively, it can actually be a tailwind for the green energy stock.
Rising inflation increases the margin on over 70% of Brookfield’s existing PPAs, plus rising commodity costs make renewable energy more economical.
Not only does Brookfield manage its risks well, but the stock is constantly finding new opportunities for growth. In fact, its funds from operations have increased at a CAGR of 10% over the last decade.
So, if you’re looking to gain exposure to green energy stocks, I’d strongly consider Brookfield, as it’s one of the best stocks you can buy now and hold for years.
