Overall, it’s been a good year for Canadian investors so far. Not even including dividends, the S&P/TSX Composite Index is up about 10% on the year. But even with the market’s strong performance in 2024, plenty of deals remain to be had on the TSX for opportunistic investors.
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Investing in Canadian energy stocks today
The renewable energy space is one area of the Canadian stock market that investors should have on their radar. There’s no shortage of well-priced, high-yielding renewable energy stocks to choose from right now.
Investors should set their expectations, though. The sector as a whole has been on the decline since early 2021, and it may take some time to return to those price levels. For long-term investors who are willing to be patient, this could be an incredibly opportunistic buying opportunity. However, for those looking to make a quick profit in the stock market, a renewable energy stock may not be the most lucrative option.
The sector may be on the decline, but that doesn’t take away from the huge long-term growth potential in the space. We’re still only scratching the surface of what the growth opportunities are here.
If you’re bullish on the long-term rise of renewable energy consumption, now’s the time to be investing.
With that in mind, here are two discounted companies to add to your watch list this month.
Energy stock #1: Brookfield Renewable Partners
Investors looking for instant exposure to the renewable energy sector should consider Brookfield Renewable Partners (TSX:BEP.UN). The $22 billion company has a global presence and boasts a wide range of renewable energy assets in its portfolio.
Excluding dividends, shares are down close to 50% since the beginning of 2021. Even so, the stock has been positive over the past five years, just trailing the market’s returns.
Brookfield Renewable Partners has a proven market-beating track record. And with an established market position, there’s no reason to doubt the company’s ability to continue outperforming the market for years to come.
Energy stock #2: Northland Power
At a market cap of $5 billion, Northland Power (TSX:NPI) doesn’t offer the same type of global exposure as Brookfield Renewable Partners. However, Northland Power still has a presence outside of Canada and pays a top dividend as well.
After two market-crushing years in 2019 and 2020, the stock has been on a decline since early 2021. However, as the share price has gradually declined, the dividend yield has shot up.
At today’s stock price, Northland Power’s dividend is yielding more than 5%.
Northland Power certainly has the potential to return to its market-beating ways. Investors may just need to be patient with this pick. But in the meantime, investors can enjoy a ton of passive income from a sky-high dividend yield.
Foolish bottom line
Short-term investors may not see a ton of upside in the renewable energy sector today. But for investors who are willing to be patient, there’s some serious value to capture — not to mention some top dividend yields.
