Renewable energy stocks are some of the best options on the market right now. This is the result of rapidly changing requirements around fossil fuels and an insatiable demand for clean energy. For prospective investors looking for long-term gains and perhaps a healthy dividend, the opportunity is huge for renewable stocks.
Here’s a look at some of the renewable energy stocks to consider for your portfolio.
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Clean energy: long-term potential and a healthy yield
Innergex Renewable Energy (TSX: INE) is one of those stocks that go unnoticed by investors. It’s also one of the renewable energy stocks that could bolster your long-term portfolio.
Innergex operates a portfolio of 85 facilities with a generating capacity of over 4,200MW. The company also has a backlog of projects in various stages of development comprising over 9,300MW of capacity. Part of that is because, unlike many other renewable operators, Innergex has taken an aggressive stance on expansion.
Innergex has operations across North America, South America, and Europe. In terms of facilities, Innergex’s portfolio comprises hydro, wind, and solar elements. While its portfolio of facilities also includes battery energy storage systems.
So then, what makes Innergex one of the renewable energy stocks to buy right now?
Despite the company’s aggressive growth and juicy dividend (more on that in a second), Innergex’s stock is down 25% year to date. Some of that drop can be attributed to the rise in interest rates and spill-on effect it has on borrowing.
Still, the company remains a stellar long-term pick that also boasts a healthy 5.89%, making it a great option for growth and income-seeking investors alike.
An established name for a great, green investment
Most investors are aware of the myriad of investment options with the Brookfield name. And Brookfield Renewable Partners (TSX: BEP.UN) is an intriguing option worthy of mention.
Brookfield Renewable currently has operations across 20 countries, boasting a well-diversified portfolio of wind, solar, and hydro facilities across those markets. The stable, if not lucrative, business model that Brookfield and other renewable energy stocks adhere to provides a recurring source of revenue.
That revenue stream is backed by long-term regulated contracts which often span decades. The company is also expecting to continue growing its portfolio through rate increases and expansion.
Turning to income, Brookfield offers investors a juicy 5.22% yield. This fact, along with the expected growth of the renewable energy market alone, makes Brookfield a superb buy-and-forget candidate for almost any portfolio
Throw in the substantial discount on the stock right now, which shows a 30% drop over the trailing 12-month period, and you have a great discounted buy.
Final thoughts
No investment is without some risk, and that includes the otherwise superb renewable energy stocks noted above. Fortunately, both Brookfield and Innergex have the funds and growth options to not only weather market volatility but continue to grow for years.
In my opinion, one or both would do well as part of any well-diversified portfolio.
