3 Energy Stocks to Buy Now
Oil stocks have generated handsome returns for millions of investors over decades. As an example, from 2001 to 2010, the Energy Select Sector SPDR ETF (NYSEMKT: XLE) generated a total return of 141% compared to the S&P 500 Index's total return of 15%. However, energy sector returns haven't been as impressive in the past decade. Between 2011 and 2020, the energy ETF generated negative total return of -23%, significantly underperforming the S&P 500 Index's return of 267%. Overall, over the two-decade time frame, oil stocks underperformed the broader market.
Though oil stocks still offer decent growth prospects, they might not replicate the kinds of returns that they generated in the past, in part due to challenges created by volatile oil prices and increasing use of renewable energy. So it would be prudent to look for energy stocks that have the potential to outperform oil stocks and the broader market. Let's check out three such stocks.
If you have invested in oil stocks primarily for dividend income, fortunately, there are dividend-paying opportunities in the renewables space, too. Brookfield Renewable Partners (NYSE: BEP) (NYSE: BEPC) offers a dividend yield of a little over 3%. With a generation capacity of 21,000 megawatts, Brookfield Renewable is one of the world's top renewable energy companies. Moreover, it has around 31,000 megawatts of capacity under development.
Source Fool.com
