The Canadian stock market has been on an impressive run over the past month. Tariff announcements initially sent the stock market spiralling in early April, with the S&P/TSX Composite Index dropping 10% in less than a week. But after bottoming out, the index has come roaring back, returning 8% over the past month, while also hitting new all-time highs.
As hot as the market is today, though, there’s still no shortage of discounts for Canadian investors to choose from on the TSX.
For opportunistic, long-term investors, the renewable energy sector could be a great place to go bargain-hunting.
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Investing in the renewable energy sector today
It’s not hard to find a renewable energy stock trading at a significant discount today. The sector as a whole has been on the decline since early 2021, largely underperforming the broader Canadian stock market’s returns.
Aside from the passive income, short-term investors likely won’t have much interest in the beaten-down renewable energy sector.
Long-term investors, however, should not overlook these bargain prices. I strongly believe that the growth potential of the renewable energy sector as a whole remains firmly intact. The question you need to ask yourself is, how patient are you willing to be? It may take time for the sector to return to its market-beating ways.
Brookfield Renewable Partners
If you’re interested in adding a top renewable energy stock to your watch list, you cannot go wrong with Brookfield Renewable Partners (TSX: BEP.UN).
The $20 billion company is a global leader in the space, with operations spread across the globe and a well-diversified portfolio of assets.
Owning shares of Brookfield Renewable Partners can provide an investor with broad exposure to the space, as well as a chance of earning market-beating returns.
Prior to the start of 2021, Brookfield Renewable Partners was no stranger to outperforming the market’s returns. From 2010 to 2020, the energy stock has been a consistent market-beater, returning more than 200%. And that’s not even including dividends, either.
Today, the stock is down nearly 50% from all-time highs and is barely positive over the past five years. But as a leader in the growth-filled renewable energy sector, I wouldn’t bet against Brookfield Renewable Partners on returning to its market-beating ways.
If you are interested in loading up at Brookfield Renewable Partners at these fire-sale prices, at least there will be a top dividend to enjoy while you wait for the stock to return to all-time highs. At today’s stock price, the company’s dividend is yielding a whopping 6%.
Foolish bottom line
I wouldn’t bank on the renewable energy sector being your ticket to get rich quick. That being said, you’d be hard-pressed to find any trustworthy get-rich-quick stocks on the TSX.
Instead, I’d suggest investing in a top-quality business with long-term growth potential, such as Brookfield Renewable Partners.
It may require patience, but if you’re bullish on the long-term rise in renewable energy consumption, Brookfield Renewable Partners should be at the top of your watch list right now.
