Yahoo Finance 3 of the Best Green Energy Stocks to Buy for the Long Haul
Written by Daniel Da Costa at The Motley Fool Canada
At this point, there is no denying that a lot needs to be done to begin to slow down climate change and eventually reverse the effects. With natural disasters on the rise, taking care of the environment is one of the biggest priorities we face. So, naturally, green energy stocks are some of the best growth stocks you can buy.
Over the long run, a lot more needs to be done than just sourcing our energy from renewable sources. And already tonnes of research and innovation is happening to help get climate change under control. However, for the time being, investing in green energy generation is one of the easiest and most important places to start.
If you’re looking to invest in a top growth stock and help the environment at the same time, here are three of the best green energy stocks to buy for the long haul.
A top Canadian growth stock
The entire green energy industry is one of the best to buy stocks for growth. However, you still want to buy the stocks that will outperform their peers, which is why Northland Power (TSX:NPI) is one of the top companies to buy for the long haul.
Northland has been a top growth stock in the past and has an ambitious growth strategy going forward. The company is looking at investing up to $20 billion over the next five years to grow its portfolio significantly.
This massive growth strategy primarily includes growing its green energy generating assets. However, Northland also wants to grow its exposure to highly resilient utility assets, as well as other cleantech businesses that can add value to its company.
Plus, it also pays a dividend, which currently yields 3%. So, if you’re looking for a high-quality green energy stock that you can buy and hold for years, Northland Power is a top choice.
A massive green energy stock with global exposure
Another one of the best green energy stocks to buy today is Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP).
Brookfield is a massive green energy stock worth over $13 billion with assets in North and South America, Europe, and the Asia-Pacific region.
The stock is one of the best to buy due to its massive global exposure and the fact that Brookfield is one of the best investment managers. In addition to a company of Brookfield’s size having global exposure, it also has better deal flow, which is why it’s one of the best stocks to buy and hold for the long run.
The company is continuously sourcing deals and looking to find the best assets that can return it strong cash flow that it uses to pay out unitholders or invest in new businesses. This is why the company can target up to 9% growth in the dividend each year and why it’s grown at a compounded annual growth rate (CAGR) of 6% over the last decade.
So, if you’re looking to increase your green energy exposure, Brookfield Renewable Partners is one of the best you can buy for the long run.
A top cleantech stock for high-growth potential
Lastly on the list is a cleantech stock, Greenlane Renewables (TSX:GRN). While there other two stocks generate power from clean sources, one of the most popular and crucial subsectors of the renewable industry, another vital industry will be cleantech.
Cleantech is an industry with a tonne of potential, especially considering a lot more needs to be done to slow down and eventually reverse the effects of climate change. So, companies like Greenlane, which help to collect biogases and prevent them from escaping into the environment, can also then purify and upgrade these gases to create renewable natural gas.
From there, renewable natural gas can be substituted for regular natural gas and used to heat our homes, power vehicles, or even create electricity. Cleantech has so much potential that it’s estimated that the demand for biogas upgrading is expected to grow at a CAGR of 30% over the next five years in North America and Europe.
So, if you’re looking for a high-quality green energy stock to buy and hold long term, a cleantech stock like Greenlane offers investors some of the best potential today.
The post 3 of the Best Green Energy Stocks to Buy for the Long Haul appeared first on The Motley Fool Canada.
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Fool contributor Daniel Da Costa owns shares of NORTHLAND POWER INC. The Motley Fool has no position in any of the stocks mentioned.
2021
