Clean Energy in Canada: The TSX Names Powering the Shift

Canada’s clean‑energy leaders Brookfield Renewable, Boralex, and Northland Power combine scale, project pipelines, and attractive yields as renewables accelerate.

Key Points
  • Brookfield Renewable offers massive scale, long‑dated corporate contracts, strong FFO, $4.7B liquidity, and a ~5.6% yield.
  • Boralex builds onshore wind, solar, and storage with North American and European contracts, low beta, and a modest dividend yield.
  • Northland Power develops large offshore wind and storage projects, expanding globally while delivering a near‑5% monthly dividend.

Canada has long been an energy powerhouse, with Alberta leading the way in the oil and gas sector. However, Canada has been proving to be an energy powerhouse in another way as well: through clean energy solutions. Our large swaths of land and coasts offer endless opportunities to get in on clean energy production. And some companies are already leading the charge. So today, let’s look at these three Canadian clean energy stocks offering up endless power to your portfolio.

A solar cell panel generates power in a country mountain landscape.

Source: Getty Images

BEP

First up, we have Brookfield Renewable Partners LP (TSX: BEP.UN), a leading operator that scales across critical technologies. The clean energy stock holds a large, diversified platform through hydro, wind, solar, batteries and even exposure to nuclear services.

Its services have led to massive partnerships. These include providing hydro to Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), delivering up to 3,000 megawatts, and 10,500 megawatts to Microsoft (NASDAQ: MSFT). These are long-dated commercial contracts as well, providing predictable cash flow and credit quality. What’s more? They are the only partnerships like this, offering immense recurring revenue for investors.

Even amidst this growth and recurring revenue, the clean energy stock has proven time and again to be a shareholder’s dream. It reported record funds from operations at $371 million in the quarter, with $4.7 billion in liquidity. All while providing a solid dividend yield at 5.6% at writing.

BLX

Next up, we have Boralex (TSX: BLX), a strong Canadian onshore and storage development pipeline operator. It delivers onshore wind, utility-scale solar, and battery storage across Canada. These projects have become strategically important as well, providing provincial reliability.

Yet it’s not only operating in Canada anymore. The clean energy stock recently signed new contracts in New York for 450 megawatts of solar. It has also signed contracts expanding its North American and European footprints, thereby balancing out resource variability and price exposure. All while it expands through new projects, closing $250 million in corporate financing.

Yet again, BLX stock still offers value. The stock has an incredibly low beta of 0.11, and a solid 2.4% dividend yield. Plus, shares are below 52-week highs, offering investors a great time to get in on a rebound in this clean energy stock.

NPI

Finally, we have Northland Power (TSX: NPI) for the truly dividend-focused investor. NPI stock is an offshore wind developer and operator with massive projects. These include the Hai Long 1 gigawatt project and Baltic Power’s 1.1 gigawatt project, as well as its turbine installation underway. These projects position NPI as a global offshore player, with offshore wind delivering large-scale low-carbon energy.

However, NPI is not only about offshore power. The clean power producer complements it with onshore renewables, storage, and even natural gas as a transitional opportunity. It’s also active in key markets like Taiwan, the Baltic, and across Europe. All while it operates at home, with a 20-year capacity contract with Ontario at its Oneida project.

Yet as mentioned, it’s a dividend provider dishing out monthly income, currently at a yield of almost 5% at writing, while also trading at a low 0.57 beta. While shares are near the high end of this stock’s 52-week range, it goes to show just how powerful this dividend stock can be.

Bottom line

Taken together, these are not identical clean energy plays. BEP provides scale with corporations backing the major stock. BLX is a strong domestic play, with NPI supporting offshore wind. Together, they provide a diverse clean energy solutions portfolio for investors wanting in on renewable energy, along with the cash that goes with it.

Fool contributor Amy Legate-Wolfe has positions in Microsoft. The Motley Fool recommends Alphabet, Brookfield Renewable Partners, and Microsoft. The Motley Fool has a disclosure policy.

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