The renewable energy sector is growing fast, but not all stocks in this space offer the same long-term reliability. The best opportunities tend to come from large companies that can manage to balance stable income-generating assets with smart, future-focused growth initiatives.
Whether it’s expanding into solar, wind, or storage, a good renewable energy stock must manage capital efficiently, protect its dividend, and navigate policy shifts effectively. For Canadian investors looking to start small, with as little as $200 today, that means avoiding overly speculative stocks and instead focusing on those with strong long-term fundamentals and proven business models.
In this article, I’ll highlight a top renewable energy stock that checks all those boxes and explain why it could be a smart buy even with a small initial investment.
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A resilient renewable energy pick with solid growth potential
With a track record of generating stable income and a pipeline of major growth projects, Brookfield Renewable Partners (TSX:BEP.UN) could be one of the best renewable energy stocks to buy on the TSX today.
It’s one of the largest renewable energy firms in the world, operating hydroelectric, wind, utility-scale solar, and storage facilities across the globe. After rising nearly 7% so far in 2025, the stock currently trades at $35.56 per share with a market cap of $10.2 billion and offers a healthy annualized dividend yield of 5.8%.
In the first quarter, Brookfield Renewable delivered strong results as its Funds From Operations (FFO) rose 7% YoY (year-over-year) to US$0.48 per unit. In fact, after adjusting for last year’s stronger-than-usual hydro generation, its FFO per unit was actually up 15%.
Despite posting a net loss of US$197 million due to non-cash depreciation charges and acquisition-related costs, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved last quarter to nearly 40%. This improvement in its profitability was mainly backed by higher contributions from new capacity and its focus on capital recycling.
Strong foundations and smart capital deployment
Interestingly, Brookfield Renewable is continuing to maintain its strong position through smart capital allocation. In the latest quarter, it raised $450 million in medium-term notes at its tightest spread in 20 years and ended with over US$4.5 billion in liquidity.
During the quarter, the company recycled over US$900 million in assets, which freed up more funds to reinvest in growth. At the same time, it delivered 800 megawatts of new capacity and expects to bring on 8,000 megawatts this year alone.
What’s especially notable is how Brookfield Renewable is managing risks around tariffs and supply chains. With long-term contracts and hedges built into its projects, and very little exposure to Chinese imports, it’s structurally set up to weather volatility better than many peers.
A long-term winner, even for small investments
Clearly, contracted cash flows, inflation protection, global diversification, and smart growth are some of the factors that make Brookfield Renewable an attractive buy today. About 90% of its revenues are under long-term contracts, with 70% indexed to inflation, giving predictable returns to support future dividend growth. That’s why, for investors looking to begin with a small amount like $200, this renewable energy stock offers great stability and solid upside.
