2 Top Energy Stocks to Buy Right Now
One of the most exciting areas of the broader energy sector today is probably the clean energy niche, because the world is on a multi-decade transition from carbon fuels, like coal and oil, to cleaner energy sources, like solar and wind. But it's important to focus on large, diversified companies that can support the spending needed to grow, and which have material internal investment pipelines. Brookfield Renewable Corp. (NYSE: BEPC) and NextEra Energy (NYSE: NEE) are two stocks that are ready to benefit all along the way.
Brookfield Renewable is the pure play here, with its entire portfolio dedicated to clean energy assets. However, there's an important nuance that investors should keep in mind. Roughly 50% of the company's revenue is derived from hydro-electric power. Water is a highly reliable base-load power source that has been used for hundreds of years (though not always to generate electricity). It is a very stable business that provides a foundation for the company to invest in newer technologies.
Those technologies include solar, wind, and things like battery storage. Altogether, Brookfield Renewable has a portfolio of 21 gigawatts of power today. But the real story is the 69 gigawatt pipeline of future projects, which suggests there is still years of growth ahead for this clean energy company. Simple math shows that the company is hoping to more than triple in size! And along the way, investors can collect a generous dividend that yielded 3.6% as of Friday's close.
Source Fool.com
