The search for top companies in the green energy revolution is on. A number of leaders in this space are providing the scale and innovation to make a true global impact in the race against climate change and support more resilient energy distribution networks.
Indeed, if we’re truly going to see an AI-driven future, we’re going to need power. A lot of power. And the companies at the forefront of the green energy revolution are looking to be the key pieces of the puzzle to solve this problem with as little impact on the environment as possible.
That’s a future most investors and citizens can get behind. So, with this goal in mind, let’s dive into two top Canadian stocks leading the green revolution toward a brighter future.
Source: Getty Images
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX:BEP.UN) is a top company in the green energy space I’ve been pounding the table on for some time.
Now, as the stock chart above shows, the medium-term ride for investors has been a bumpy (and perhaps uncomfortable) ride. Brookfield is still up over a five-year basis, but it’s also a stock that’s down considerably from its peak in 2021.
Many stocks are, so that’s not necessarily saying too much. One could argue that the underlying secular catalysts which took this stock to more than $50 per share during its previous rally have improved. But it’s also true that pro-oil interests politically in both Canada and the U.S. may be reshaping the amount and direction of investment over time.
That said, Brookfield is a company that touts one of the world’s largest renewable energy portfolios. Currently, the company holds around 31,400 MW of clean energy capacity, which is geographically diverse (spread around 20 countries). So, for investors looking to play this trend at a global scale, Brookfield is among the leading ways to do so. And with a dividend yield of around 6.7%, Brookfield is also a top dividend stock to consider adding in this current environment for its income potential as well.
Canadian Solar
Canadian Solar (NASDAQ:CSIQ) is another top renewable energy company I think investors would do well to consider.
Unlike many top players in this space, Canadian Solar is a long-standing behemoth, launched in 2001 and based in Guelph, Ontario. The company focuses on providing solar modules around the world, and has thus far delivered more than 125GW of such models to companies developing utility-scale solar projects.
One could argue that if we’re going to have a truly green future, solar energy is likely going to need to play a big role in this transition. Thus, I think Canadian Solar is well-positioned to develop the sort of energy production capacity we’re going to need from large-scale projects.
Canadian Solar is investing in higher-efficiency panels and integrated solutions, factors that should make the company’s offerings more cost-effective for its clientele. CSIQ stock doesn’t offer a dividend, but trades at a relatively attractive multiple, making this more of a value play on this sector in my books.
