Finding that perfect mix of investments can make the ultimate difference in reaching your retirement goals or needing to work several years longer. Fortunately, the market gives us plenty of options to add to put you in the green. That includes some of the stellar renewable energy stocks listed below.
Renewable energy is a massive buy-and-forget opportunity
One of the first renewable energy stocks for investors to consider is TransAlta Renewables (TSX: RNW). TransAlta boasts a portfolio of renewable energy facilities that are located across Canada, the U.S., and Australia.
Those facilities also boast a variety of different renewable energy technologies, including solar, hydro, wind, and gas.
And perhaps best of all, TransAlta’s facilities follow the same lucrative business model that traditional utilities follow. In fact, many of TransAlta’s facilities have long-term regulated contracts spanning a decade or more in duration.
That stability provides TransAlta with a stable and recurring revenue stream, allowing the company to invest in growth and pay a handsome dividend.
As of the time of writing, that dividend works out to a juicy 7.01%, making it one of the better-paying options on the market. Even better, that dividend pays out monthly.
To put that earnings potential into context, investors with $30,000 to invest in TransAlta can expect to generate a monthly income of approximately $175. That income stream alone may entice investors to buy TransAlta as one of the renewable energy stocks to put you in the green.
How about a diversified renewable energy mix?
Another intriguing example for investors to consider is Algonquin Power & Utilities (TSX: AQN).
For those that are unaware of the stock, Algonquin operates both a utility and renewable energy business. The renewable energy business comprises facilities located in the U.S. and Canada. The utility arm is focused mainly on the U.S. market but also has operations in the Caribbean and South America.
The renewable energy business comprises hydro, wind, solar, thermal, and renewable gas elements. And like TransAlta, those same long-term regulated contracts apply to help generate a recurring revenue stream.
In short, Algonquin is one of the renewable energy stocks that boasts both defensive and growth appeal to investors.
Turning to dividends, Algonquins offers investors a quarterly dividend with a yield that works out to 5.19%. Using that same $30,000 example from above, prospective investors can expect to generate an income of just over $1,560.
Another point to note is that earlier this year Algonquin slashed its dividend. That announcement (which was made late last year) resulted in the stock price dipping considerably. In fact, over the trailing 12-month period, Algonquin is down a whopping 35%.
For prospective investors, this dip should be viewed as an opportunity to buy this long-term stock at a decent discount.
Will you buy these renewable energy stocks today?
Renewable energy stocks like Algonquin and TransAlta offer investors a juicy income today and significant growth potential for the future. In my opinion, one or both stocks should be part of any larger, well-diversified portfolio.
