Renewable energy stocks still remain one of the top long-term investments that Canadians can buy. And here’s the best news, so many are undervalued! Today, however, we’re going to look at the best of the best – the ones I would recommend to investors first and foremost to get you the green. So let’s get right into it.
Short term
In the short term, nuclear power is going to be one of the best ways to get into renewable energy. These companies offer clean solutions through the use of uranium to power nuclear power plants. Now long term, uranium is still a finite resource. So eventually, we’ll likely move to something else. But for now, a company like Cameco (TSX: CCO) provides some strong opportunities.
Shares of Cameco stock certainly don’t look valuable while trading at 102 times earnings as of writing. But investors need to look beyond today’s share price and realize that this company continues to offer major growth. It’s one of the renewable energy stocks actually doing well, and should continue to do so for at least the next few years, if not the next decade.
So while shares of Cameco stock are up 106% in the last year, I wouldn’t be surprised if it doubles again in the next year as well, especially as costs come down and uranium prices rise. So it’s certainly one to consider for major growth in the short term.
Medium term
Another area that should see growth in the next decade at a more consistent level is Hydro One (TSX: H). Right now, that’s not happening as much only because the company is part of the utility sector. These stocks climbed and fell as interest rates and inflation all influenced the stock. Yet now, Hydro One stock offers investors strong growth once more.
Shares continue to trade up 6% year to date, but have had a ride up and down in the last year. That should certainly stabilize as utility stocks come roaring back. And while there are other companies that have been around for longer, that’s exactly why I like Hydro One stock better.
Hydro One stock offers the chance to get in near the ground floor and create huge returns in the medium and long term. And with shares trading with a dividend yield of 3.03% as of writing, you can certainly make it worth your while by buying now.
Long term
Now, for a long-term hold, Brookfield Renewable Partners LP (TSX: BEP.UN) remains one of my top choices among renewable energy stocks. The stock rose up only to come crashing down, now trading at about half of where it was near 52-week highs. But that’s exactly why I like it.
The company may have been influenced by rising inflation and interest rates, but it remains a solid long-term option. That’s because BEP stock holds a diversified set of renewable energy assets. So no matter what the future holds, BEP stock will be able to handle it.
So right now there is huge value. Value that is already going away. Shares trade up a whopping 30% since hitting lows in October. Plus you can grab a 5.12% dividend yield as of writing! So this is definitely a long-term stock you won’t want to miss out on.
