It’s always exciting to invest in a growing industry. At present, this industry must be made up of stocks of renewable energy. These stocks have a bright future ahead of them, and investors could certainly generate massive value by investing today.
The problem is that we are currently going through an economic crisis. The TSX is down 12.5% since the start of writing. After a slight rally, stocks are down again thanks to recent earnings reports.
That’s why today I’ll be looking at renewable energy stocks where investors can safely put their money. Additionally, investors can also lock in passive income for life.
Search a history
What investors should first consider when looking at renewable energy stocks is to find stocks that have been around for a long time. I don’t mean just a few years, but decades. These are probably blue chip companies that have already gone through most of the initial growth phase. This includes major acquisitions, construction, and other growth initiatives that typically involve a lot of spending.
Once these expenses are made, it’s more about slowly growing and collecting revenue. This income can therefore be distributed in the form of dividends to investors. And many renewable energy stocks have that cash flow.
Renewable energy is not new, after all. In fact, it’s quite old, with some companies putting their money into it long before the oil and gas boom of the 20th century. And if I had to invest in just one of these companies, it would be Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP).
Brookfield Renewable Stock
Brookfield Renewable shares look old sufficient on the surface. It has been trading in the market for about two decades, which is certainly a substantial track record. However, if you look at the parent company Brookfield Asset Managerit becomes more impressive.
The parent company has been investing in renewable energy for over a century, almost 150 years! He started this growth in Guatemala and has been growing this arm ever since. Today, it has one of the best stocks of renewable energy on the market.
Why? Because it does not attach to a single type of asset. Brookfield invests in virtually every type of renewable energy on the planet, everywhere on the planet. It is this diversified income that allows investors to remain confident about the growth of the company and its dividend.
How much are we talking here?
Brookfield currently offers a substantial dividend yield at 4.10%. This dividend is much higher than at the start of this year, as it is one of the renewable energy stocks down 8.8% since the start of the year. However, you will notice that it is still an improvement over the performance of the TSX today.
In other words, it could mean that the deal on this renewable energy stock won’t last long. Investors should therefore seize the opportunity and hang on to that 4.10% dividend yield for the theft it represents. A $5,000 investment could return $217.50 on the Toronto Stock Exchange today. That same investment would have only returned $164 at 52-week highs!
At the end of the line
If you are looking for passive income from renewable energy stocks, I would strongly consider Brookfield stocks. It has strong growth behind it, up 1,591% over the past two decades, and a high dividend yield of 4.10% to look forward to. But these deals won’t last forever, so grab them before they’re gone!