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.

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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).

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.

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.

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