Don’t let the Canadian stock market’s somewhat surprising performance this year keep you on the sidelines, waiting for a dip to invest. Despite the S&P/TSX Composite Index trading positive on the year, there is no shortage of TSX stocks trading at opportunistic discounts right now. But with so many top companies trading at bargain prices today, where should investors start?
Where to invest right now?
The tech sector is one area of the Canadian stock market that’s been on absolute fire this year. However, many of those high-flying tech companies continue to trade below all-time highs that were set in late 2021.
It’s been a year of redemption for tech companies across the TSX. And with share prices for many of those tech stocks still below all-time highs, there could still be some value to capture before the end of the year.
The renewable energy space is another sector that has its share of discounted companies to take advantage of today. After a strong rebound from the COVID-19 market crash, the sector as a whole has been on the decline since early 2021.
Building a passive-income stream in today’s volatile market
Cheap share prices aren’t the only reason to have a renewable energy stock on your radar. Canadian renewable energy stocks are no stranger to paying top dividends. And especially with the discounted share prices, yields have shot up to very enticing levels.
Lastly, investors cannot forget about the renewable energy sector’s long-term growth potential. We’re still in the very early days of understanding what the true potential of the renewable energy space is. We’re seeing demand continue to consistently rise, making the sector an extremely appealing one for long-term investors.
With that in mind, I’ve reviewed a top renewable energy company that long-term investors cannot go wrong with.
Brookfield Renewable Partners
At a market cap of just over $20 billion, Brookfield Renewable Partners (TSX:BEP.UN) is a global leader in the space. The company offers its customers a wide range of green energy solutions to choose from, including hydroelectric, wind, and solar sources.
Excluding dividends, the stock has dropped close to 40% since early 2021. Despite that, shares have still more than doubled the returns of the broader Canadian stock market over the past five years.
In addition to a proven market-beating track record, Brookfield Renewable Partners pays a top dividend. At today’s stock price, the company’s dividend is yielding a whopping 5%.
There are not many companies on the TSX with a market-beating track record like Brookfield Renewable Partners that also pays a 5% dividend.
With shares trading at a rare discount, Canadian investors would be wise to act fast on this one. We may not see Brookfield Renewable Partners trading at a discount like this again for a while.
Foolish bottom line
There’s a lot to like about the renewable energy space. Discounted prices have sent dividend yields soaring, and there’s a lot of growth potential to be bullish about in the coming decades.
If you’ve been thinking of loading up on a renewable energy stock, now’s the time.
