Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
The world is undergoing a large-scale transition to clean energy, creating a reliable, long-term demand for renewable energy. While investing in renewable energy stocks may seem risky, in reality, the industry offers a unique combination of stability, growth potential, and forward-looking opportunities. So, let’s take a look at some renewable energy stocks with a solid performance record.
First, let’s discuss Hydro One (TSX: H), a leader in electricity transmission and distribution in Canada. As a regulated utility company, Hydro One ensures a stable source of revenue that is less susceptible to market fluctuations. In Q3 of 2024, Hydro One reported a year-on-year revenue increase of 13.34%, reaching $2.19 billion.
Moreover, Hydro One’s profitability metrics, such as a 26.83% operating profit margin, indicate the company’s ability to generate strong cash flow.
Next, we have Brookfield Renewable Partners (TSX: BEP), which boasts a diverse portfolio of hydroelectric, wind, solar, and energy storage facilities. It is one of the largest publicly traded renewable energy platforms in the world. In Q3 of 2024, Brookfield Renewable’s funds from operations (FFO) totaled $278 million, marking an 11% year-on-year increase.
Although Brookfield operates in a capital-intensive industry, the company consistently maintains strong cash flow and continues to return capital to shareholders with an attractive dividend yield of 5.41%.
Both of these renewable energy stocks feature lower risk and higher potential returns. Hydro One’s regulated business model ensures stable revenue regardless of economic fluctuations. Brookfield’s global footprint and diverse asset portfolio mitigate regional risks. These built-in safeguards make these stocks appealing to both conservative and growth-oriented investors.
Looking ahead, the prospects for these renewable energy stocks are bright. Dividends are another reason many investors favor these stocks. Both Hydro One and Brookfield Renewable offer reliable and competitive dividend yields, which are particularly attractive to income-focused investors. Hydro One’s expected annual dividend of $1.26 reflects confidence in stable future cash flows, while Brookfield Renewable’s yield stands at 5.41%.
Given their indispensable role in the transition to green energy, these two renewable energy stocks represent some of the best investments in the sector. With strong financials, enticing dividends, and a commitment to sustainability, these stocks provide a reliable way to invest in the energy future.
