Whether you’re looking to put your annual Tax-Free Savings Account (TFSA) contribution of $7,000 to good use or simply seeking a timely investment opportunity, renewable energy stocks could be worth considering in 2025.
While the renewable energy sector enjoyed its time in the spotlight a few years back, things have since cooled down a bit. But that’s exactly when Foolish Investors should start paying attention. What looked too expensive a few years ago is now trading at levels that could offer long-term value, especially if you believe the world isn’t turning away from clean power anytime soon.
In this article, I’ll highlight two top dividend-paying renewable energy stocks and tell you why buying them right now could be a smart move for patient investors.
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Brookfield Renewable stock
The first renewable energy stock you may want to consider right now is Brookfield Renewable Partners (TSX:BEP.UN). The company runs one of the world’s largest publicly traded renewable power platforms, including hydro, wind, solar, and storage facilities spread across several continents.
The stock is currently trading at $32.56 per share with a market cap of $9.3 billion and offers quarterly dividends with a generous 6.3% annualized dividend yield.
Brookfield Renewable stock has had a rough year, dropping about 15% over the past 12 months. But here’s why that might actually work in your favour. The company posted a record quarter (three months ended in March 2025) with US$315 million in funds from operations, up 7% from a year ago. Its development pipeline has also grown stronger as it added 800 megawatts of new capacity in the recent quarter, with more expected later this year.
Also, Brookfield Renewable has been busy acquiring growth platforms like Neoen and National Grid Renewables, expanding its clean energy footprint in key geographic markets. With 90% of its portfolio under long-term contracts and about 70% of revenues linked to inflation, its setup is ideal for patient investors who want reliable dividends with long-term upside.
Northland Power stock
Another top renewable energy stock worth looking at is Northland Power (TSX:NPI). This Toronto-based firm generates electricity through a mix of offshore and onshore wind, natural gas, and battery storage projects. NPI stock is currently trading at $20.77 per share with a market cap of $5.4 billion and an annualized dividend yield of 5.8%, paid out monthly. While the stock is still down nearly 15% over the past year, it has made a solid comeback recently with gains of over 13% in the last month alone.
Northland just achieved a big milestone by bringing Canada’s largest battery project, the 250-megawatt Oneida facility, into commercial operation. And more importantly, it did so ahead of schedule and under budget. That kind of project execution adds to its credibility.
Meanwhile, construction is also progressing steadily at its Hai Long and Baltic Power offshore wind farms, which are expected to start generating revenue over the next couple of years. With more than 10 gigawatts of potential capacity in development and growing global demand for clean energy, long-term investors may find this renewable power stock attractive.
