There’s no shortage of great energy stocks on the market right now. Some of those great picks can offer years of growth and dividend income to meet any portfolio objective.
Here’s a look at a pair of those smartest energy stocks that you can start investing with just $200 right now.
Source: Getty Images
Start with the behemoth
Most investors are aware of Enbridge (TSX:ENB) as one of the largest energy infrastructure companies on the planet. And there’s a good reason for that view. Enbridge is huge and has its tentacles embedded into multiple corners of the energy market.
In addition to operating the largest and most complex pipeline system on the planet, Enbridge also boasts a growing renewable energy segment in addition to operating North America’s largest natural gas utility.
That pipeline network, which generates the bulk of Enbridge’s revenue, is responsible for hauling nearly one-third of all North American-produced crude. Turning to natural gas, Enbridge’s pipeline segment transports approximately one-fifth of the natural gas needs of the entire U.S. market.
That fact alone makes Enbridge a superb investment with plenty of defensive appeal.
Turning to renewable energy, Enbridge continues to shine. The company has invested over 10 billion into the segment over the past two decades, and that investment has paid off. Today, the segment comprises nearly 40 renewable energy facilities located across Europe and North America.
Those facilities include solar, hydro, and wind elements. More importantly, like a traditional utility, those facilities generate a recurring and stable revenue stream backed by regulatory contracts that span decades.
Collectively, those segments provide Enbridge with plenty of long-term growth potential as well as fuel for sustaining Enbridge’s very lucrative quarterly dividend.
As of the time of writing, that dividend boasts an impressive 6.29% yield, making it one of the best-paying dividends on the market.
Prospective investors should also note Enbridge has consecutively provided annual upticks to that dividend for three decades without fail.
The stock trades at just under $60, meaning that a $200 investment this month is a great way to start any portfolio. Enbridge’s diversified nature, juicy dividend, and long-term potential handily make it one of the smartest energy stocks to buy.
Have you considered a renewable energy giant?
Enbridge isn’t the only great pick to consider. Another one of the smartest energy stocks to buy now is Brookfield Renewable Corporation (TSX:BEPC). The Brookfield is well-known to most investors, comprising some of the best long-term investment options for any portfolio.
The renewable corporation carries that same appeal. Specifically, Brookfield Renewable comprises one of the largest global renewable portfolios on the planet. That portfolio includes wind, solar, and hydro facilities that span across five continents.
Those facilities generate a stable and recurring revenue stream that allows the company to invest in growth and pay handsome dividends. That’s because those renewable facilities adhere to a business model similar to that of their fossil fuel-burning peers.
As of the time of writing, that yield works out to a juicy 4.80%. For prospective investors looking to buy Brookfield as one of the smartest energy stocks for any portfolio, $200 works out to a few shares to get started.
But that’s not even the best part.
Like Enbridge, Brookfield has an established cadence of providing generous annual upticks to that yield stretching back over a decade. This means that prospective investors can buy Brookfield now and let reinvestments provide additional growth over a longer period.
In other words, buying shares of Brookfield today can provide an avenue for long-term growth that can span decades.
Buy the smartest energy stocks
All stocks, even the most defensive, carry some risk. Fortunately, both Brookfield and Enbridge offer investors a good mix of growth and income-earning capabilities.
In my opinion, one or both should be core holdings in any well-diversified portfolio.
