Oil prices are making headlines, but don’t get caught up in what is likely to be a transitory price swing. The world is still shifting toward cleaner energy options. Given the green energy sector’s still small size, there are material growth opportunities ahead for investors. Two great options that let you lean into the growing importance of clean energy on planet Earth are Brookfield Renewable (NYSE: BEP)(NYSE: BEPC) and NextEra Energy (NYSE: NEE). Here’s a look at each one.
Brookfield Renewable’s portfolio spans across North America, South America, Europe, and Asia. It generates electricity via hydroelectric, solar, and wind systems. And it provides energy storage and nuclear power services, as well. It is a simple and easy way to add green energy investments to your portfolio.
Image source: Getty Images.
Clean energy remains an important and growing part of the global energy mix, and these two companies are industry leaders.
Oil prices are making headlines, but don’t get caught up in what is likely to be a transitory price swing. The world is still shifting toward cleaner energy options. Given the green energy sector’s still small size, there are material growth opportunities ahead for investors. Two great options that let you lean into the growing importance of clean energy on planet Earth are Brookfield Renewable (BEP 1.59%)(BEPC 1.26%) and NextEra Energy (NEE 0.24%). Here’s a look at each one.
Brookfield Renewable has all of your bases covered
Brookfield Renewable’s portfolio spans across North America, South America, Europe, and Asia. It generates electricity via hydroelectric, solar, and wind systems. And it provides energy storage and nuclear power services, as well. It is a simple and easy way to add green energy investments to your portfolio.
Image source: Getty Images.
It is also a reliable high-yield income investment. The distribution has been increased regularly for a decade at an annualized rate of 5%. The goal is to continue increasing the distribution at a rate of 5% to 9% per year. Backing that is management’s projection for 10% funds from operation growth through at least 2031. The goal is to invest up to $10 billion in growth over that span.
The yield is currently 4.7% for the partnership units and 4.4% for the corporate shares. They represent the same entity; the yield difference is due to higher demand for the corporate shares. While institutional investors may not be allowed to buy partnerships, there’s no particular reason why smaller investors should avoid the higher-yielding partnership units.
Brookfield Renewable
Today’s Change
(-1.26%) $-0.47
Current Price
$36.68
NextEra Energy gets you halfway in
NextEra Energy is one of the world’s biggest utilities, operating a large regulated utility in Florida. However, there’s another side to the business. The company is also one of the world’s largest producers of solar and wind power. The utility is a slow-and-steady foundation, while the clean energy business is the company’s growth engine. The company is working on a backlog of 20 gigawatts of clean energy projects, but hopes to grow its backlog to as much as 100 gigawatts by 2032.
NextEra Energy
Today’s Change
(-0.24%) $-0.22
Current Price
$93.10
Management is projecting earnings growth of 8% a year through 2035. That supports the near-term goal of 6% dividend growth through 2028, but likely means that the multi-decade dividend streak will continue well past that. The dividend yield is a well above market 2.6%.
Have your green energy and collect some green along the way
The growth of the clean energy sector will take place over decades. Brookfield Renewable and NextEra Energy are already industry leaders. Still, buying them today will let you collect attractive and growing dividends while continuing to benefit from the long-term green energy transition. Now that’s something to celebrate if you are a dividend investor.
