The Top TSX Stock on My Watch List Right Now

This TSX stock hit all-time highs and has since come down, by almost half, but I’ll continue to buy it again and again as it bounces back.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 13, 2023 3:00 pm EDT

| More on: BEP.UN

So many good companies remain in value territory right now. Many that at the very least are trading far below where they should be. But if there is just one TSX stock that is at the top of my watch list, it’s Brookfield Renewable Partners LP (TSX:BEP.UN).

A plant grows from coins. — Source: Getty Images

Why this TSX stock?

Brookfield stock is the best TSX stock in my books for long-term income. I’m not just talking a decade from now either. I’m talking decades and decades and decades.

This, of course, is owing to the company’s focus on renewable energy. Brookfield stock has been trading on the market for around 20 years, but its parent company has been around since the late 1800s. Since that time, it has focused on renewable solar power, hydro power, wind power, and more.

Brookfield stock has so much opportunity ahead of it as well. The company continues to have a foot in the door of practically every single type of renewable energy project. Whether it’s hydro or nuclear power, it’s there.

And yet, shares continue to trade at almost half of all-time highs.

The rise and fall

Brookfield stock rose to all-time highs when then-new President Joe Biden entered the world stage. The President promised a lot of funding towards green energy projects, and therefore Brookfield stock soared upwards.

However, it soon became clear this wouldn’t exactly mean a shift to renewable power overnight. While it’s a start, shares soon dropped off from there.

Enter a poor economic scenario, and shares of Brookfield stock are now far lower than not only what they were, but also where they should be. Not only have I held onto the stock in that time, but I’ve been dripping into it. And this history and future outlook is of course why.

Hopefully history repeats itself

Even after the fall, Brookfield stock is a solid buy for future growth. In the last two decades, shares have climbed a whopping 1,449%! That’s a compound annual growth rate (CAGR) of 14.67%. And again, that’s without considering that it also flew up to around $70 per share.

Now those shares trade at about $38 per share as of writing. Again, that’s about half of all-time highs, and those heights are certainly bound to be achieved eventually. All it will take are some of these partnerships and projects to get underway after inflation and interest rates get under control. From there, the stock is bound to soar upwards.

Bottom line

I’m practically certain that I’m going to see more growth similar to the 14.7% CAGR we’ve seen in the past. For now though, I’m quite happy with the 5.16% dividend yield I’m getting, and the steal with shares down 16% in the last year alone.

With the world shifting to renewable energy, Brookfield stock provides me with diverse income from properties around the globe. I’m confident I’ll continue to see my dividend increase, as well as returns climb in the years to come. So any dip that comes up on my watch list, you can bet I’ll drip right into it again and again.