Green energy stocks aren’t just an ESG-friendly way to score a hefty dividend. They’re relatively cheap with some pretty impressive tailwinds that could propel them for many years to come. Undoubtedly, between now and 2030, a lot of new AI-ready data centres are going to be coming online. And a lot of those power-hungry data centres are going to need clean, renewable sources of energy to keep the lights on. In this piece, we’ll check out a trio of intriguing green energy stocks that I think trade at very reasonable multiples.
Source: Getty Images
Brookfield Energy Partners
First up, we have the yield-heaviest play in Brookfield Renewable Partners (TSX: BEP.UN), which boasts a 5.9% dividend yield at the time of this writing. Undoubtedly, the firm has been doing a great job of acquiring top-tier assets across the renewable space. The Isagen project bolsters Brookfield Energy’s impressive book of hydro assets and could give the ailing green energy titan a much-needed jolt as it hopes to get back on its feet after dragging in performance since peaking out at the very end of 2020.
Sure, the green energy boom may have calmed, but longer-term, there’s still plenty of dividend growth and turnaround upside as AI-driven secular and other tailwinds come into play. With shares still down 44%, I’d be inclined to punch a ticket at less than $35 per share. Indeed, 1.2 times price-to-sales (P/S) seems like a low price to pay for one of the premier names in the renewable energy space.
First Solar
First Solar (NASDAQ: FSLR) is a great deep-value option for Canadian investors who want to be on the forefront of solar. The firm designs solar cells using its cadmium telluride tech. And while shares have been wildly volatile (1.5 beta) amid macro uncertainties and tariff tremors, I do think the modest price of admission and recent earnings beat are worth getting behind.
Indeed, there’s no telling when the worst of tariff headwinds will subside. Regardless, the long-term thesis still looks intact, and at just 15.8 times trailing price-to-earnings (P/E), I do think investors are getting a pretty sweet deal as the firm looks to continue its comeback after tanking nearly 60% between 2024 and its 2025 lows.
With hiked guidance for the full year, perhaps it’s time to give FSLR shares the benefit of the doubt. The solar cell maker will play a pivotal role in the green energy revolution and be in a position to benefit from the industry-wide AI-driven surge in demand for clean energy. If the firm can smoothly expand its U.S. manufacturing, I’d not be too surprised if it can overcome the tariff headwinds that have weighed so heavily on the minds of shareholders.
Northland Power
Finally, we have Northland Power (TSX: NPI), a diversified green energy producer that has a respectable 5.4% yield. It’s also a relatively small player ($5.8 billion market cap) that has the wind to its back. With two major offshore wind projects poised to come online in the coming months, I’d not sleep on the firm as it looks to make the most of its newfound momentum.
Of course, the stock is still down over 56% from its 2020 high, but with a reasonable 21.1 times forward P/E multiple, I view NPI as a great long-term source of passive income for investors. Additionally, NPI stock is the least choppy green energy name on this list, with a mere 0.5 beta.
