Written by Amy Legate-Wolfe at The Motley Fool Canada
It’s Earth Day tomorrow, and never before has the world been more focused on going green. And I mean that quite literally. The world over, countries are focusing on creating green, clean, renewable energy solutions.
While the reasons behind these moves aren’t always solely from the goodness of their hearts, the fact is money is pouring into green energy stocks. That is why this Earth Day, you can make your portfolio just as green.
For the investor wanting a payout immediately, consider Northland Power (TSX:NPI). Northland stock is an excellent option as it provides diversified assets around the world. This includes solar power, hydro power, and even offshore wind farming.
However, the biggest draw for Northland stock is that it offers passive income through dividends that come out every month. Currently, Northland stock has a dividend yield at 3.55%. That comes out as $1.20 per share annually, or $0.10 per share monthly.
Shares of Northland stock also trade in value territory at 9.79 times earnings as of writing. It’s a green energy stock that remains down this year, down 14% in the last year, and down 10% year to date. Given that the stock is bound to recover, I would certainly consider it among other green energy stocks if you’re looking for cash up front.
Brookfield Renewable Partners (TSX:BEP.UN) is another solid option similar to Northland stock. It too has diversified assets but in even more locations. Further, the company is an offshoot of its parent company Brookfield Corporation. While Brookfield Renewable stock may have been around for about 20 years, Brookfield Corporation was founded back in 1899.
Even then, it was into clean energy, which is why there is a long history of growth for the company in this field. Now that it continues to make acquisitions and partnerships in everything from solar power to reactors, it has its hand in everything. And that means long-term contracts from diverse sets of assets for investors.
Shares trade at a valuable 1.74 times book value, down 12.5% in the last year. However, shares have started to recover, up 16% year to date. So, it might be a good idea to bring in a 4.37% dividend yield while you can.
For those hoping for major growth while still looking at a shift into clean energy, Hydro One (TSX:H) is an excellent option. It operates utilities in Canada, focusing on the most populated province of Ontario. Yet it’s also been expanding, providing more diverse revenue streams as well.
However, the prime revenue comes from its hydro operations, which is what makes it one of the green energy stocks to consider. What’s more, the province of Ontario holds 47% common equity stake, so you have knowledge that it’s well supported by the provincial government.
Hydro stock has actually been doing incredibly well, with shares up 15% in the last year and 9% year to date. Even so, it’s a new company on the TSX. You can lock up some long-term growth while it trades at 2.1 times book value — all while receiving a 2.82% dividend yield.
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Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield, Brookfield Corporation, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.