If you’ve been looking into energy stocks, a lot of the time, there might be a focus on dividend income. Energy stocks have long been known to provide investors with solid dividend yields and continue to increase those dividends year after year.
But dividends can’t be the only thing you focus on. In fact, many energy stocks focused on oil and gas have been stagnant in the last few years. And with the renewable energy transition already underway, I can’t say there are many oil and gas companies that would be worth your long-term investment.
But that’s not the case for these three energy stocks. These companies provide exposure to energy without the risk of collapse. Let’s get into them.
Cameco
Cameco (TSX: CCO) is an excellent choice if you’re interested in growth and the renewable energy transition. The company focuses on the production of uranium. Uranium is essential to the use of nuclear reactors. And that’s where things get interesting.
Already, over 20% of the United States is powered by nuclear power. Globally, this is expanding at a rapid rate. And Cameco stock is the world’s largest publicly traded uranium producer. So, not only does it look like it will continue to see growth in the next few years but also potentially for decades during this transition.
Shares of Cameco stock are already up 97% in the last year alone. But this should certainly continue to climb in the next few years, making it highly worth your while.
Brookfield Renewable
Another company worth your attention is Brookfield Renewable Partners (TSX: BEP.UN). BEP stock soared in share price when United States president Joe Biden was elected, with a focus on bringing renewable energy to the United States.
However, this has slowed, causing the stock to slump. Add in high interest rates that are hurting the company’s loan payments, and it’s been a difficult few years. That being said, I would instead see this as a company that offers a huge deal.
With a dividend yield at 6.5% as of writing and the company seeing some positive moves in the last few months, there could be a major increase in share price in the near term. Long term, with a diversified set of renewable energy assets, it looks like a strong choice for investors.
Hydro One
Finally, for those wanting companies that are already strong and can continue to grow steadily, then Hydro One (TSX: H) is an easy choice. Hydro One stock provides hydroelectric power to Ontario, Canada’s most populated province. Backed by the Ontario government, it’s a stable company that isn’t going anywhere.
That’s especially since it’s in the field of utilities, which continues to be essential for everyone around the world. Meanwhile, Hydro One stock provides higher returns, given its relatively new status on the market compared to other utility peers.
So, with a dividend yield of 3.13% and shares up 76% in the last five years alone, it’s an easy choice for energy stock investors.
