The global shift toward cleaner and greener energy solutions is unfolding right now as countries continue realigning goals to fight climate change. As global temperatures continue to rise, the growing demand for renewable energy will only fuel the growth of the industry.
To make things even better, the growing demand for artificial intelligence is also acting as a tailwind for renewable energy. Major players in the tech sector want to leverage clean energy to power data centres with green energy sources.
As an investor, the key to success is allocating money to assets that deliver long-term growth. To this end, the top renewable stocks like Brookfield Renewable Partners (TSX:BEP.UN) can be excellent holdings to consider. When investing in renewable energy, you are also investing in a better future for the planet.
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Top renewable energy pick
Brookfield Renewable is a $24.54 billion market capitalization is one of the most popular picks for ESG (environmental, social, and governance) investors interested in leveraging the growth of green energy.
The renewable power generating company boasts a highly diversified portfolio of renewable energy assets, including solar, wind, and hydroelectric power facilities. Besides its facilities generating clean energy, Brookfield also offers decarbonization solutions.
Brookfield Renewable is also a reliable dividend stock that pays its shareholders on a quarterly schedule. The company’s management uses a repeatable growth strategy, relying on its diversified portfolio to generate solid cash flows that comfortably fund its dividends and capital programs.
Solid performance
Well-capitalized and well-managed, Brookfield Renewable has the aim of becoming one of the biggest entities in the global clean energy industry. According to Conner Tesky, the company’s chief executive officer, it might be possible after Brookfield Renewable reported a record year in 2023.
Despite rising key interest rates and supply chain problems, BEP.UN stock reported an over 66% reduction in its net loss. The stock boasted a 9% year-over-year increase in its funds from operations.
The company’s net income also increased to US$35 million in the fourth quarter of fiscal 2023, a big improvement from a US$82 million net loss in the same quarter last year. By the end of fiscal 2023, the renewable energy giant saw its operating and development capacity reach 166,000 megawatts.
The company’s diversified asset base combined with inflation-tied and contracted cash flows helped it deliver a stronger performance in the high-interest-rate environment.
The first quarter of fiscal 2024 saw Brookfield Renewable report a 12.1% growth in its revenue year over year.
Foolish takeaway
Brookfield Renewable boasted $4.4 billion in available liquidity by the end of the first quarter of this fiscal year and has an overall positive outlook in its ability to meet the growing demand for green energy.
As of this writing, Brookfield Renewable stock trades for $37.18 per share, boasting a 3.80% trailing dividend yield. If you are bullish on the green energy industry, Brookfield Renewable can be an excellent pick for your self-directed portfolio.
Allocating a portion of your available Tax-Free Savings Account contribution room can help you enjoy long-term growth through capital gains without incurring taxes on it.
