Brookfield Renewable Partners (TSX:BEP.UN) and Northland Power (TSX:NPI) offer high yields and exposure to AI-driven energy demand.
Canadian green energy stocks represent not only an ESG-compliant high-dividend option but are also relatively undervalued with long-term growth catalysts. Undoubtedly, from now until 2030, numerous new artificial intelligence (AI) data centers will come online, and these power-intensive facilities will require clean, renewable energy to operate.
Based on this outlook, the following two reasonably valued Canadian green energy stocks warrant long-term holding.
As one of the world’s largest publicly traded renewable power companies, Brookfield Renewable Partners (TSX:BEP.UN) operates across hydro, wind, solar, nuclear, and energy storage. Its Q2 2025 results demonstrate scale advantages: Funds from operations (FFO) hit a record C$371 million (C$0.56 per unit), up 10% year-over-year.
Despite this, Brookfield’s shares have weakened persistently since peaking in late 2020, declining 44% cumulatively. However, this has pushed its dividend yield to 5.9%, with a targeted annual distribution growth of 5-9%. Its price-to-sales (P/S) ratio stands at just 1.2x. Although the green energy boom has cooled temporarily, AI-driven secular trends and other tailwinds should fuel future dividend growth and valuation recovery.
Moreover, compared to guaranteed investment certificates (GICs), the stock offers robust income plus growth potential. Brookfield continues acquiring premium renewable assets, with the Isagen project strengthening its hydro portfolio and injecting recovery momentum into the energy giant. Its diversified assets and 90% contracted cash flow provide economic downside protection, while long-term power purchase agreements (PPAs) ensure income stability.
As a diversified green energy producer, Northland Power (TSX:NPI) owns 3.2 gigawatts (GW) of power-generating infrastructure assets, with most electricity sold via long-term PPAs featuring a weighted average contract life of ~15 years. It currently has 2.2 GW under construction and expects total capacity to reach 6 GW by 2027, supported by two major offshore wind projects commencing operations within months.
Despite this, the stock trades over 56% below its 2020 peak. It now offers a 5.4% dividend yield and a forward price-to-earnings (P/E) ratio of just 15.1x. Additionally, its beta of 0.5 ranks among the lowest volatility plays in the sector. Management projects 2027 adjusted EBITDA of C$1.6–C$1.8 billion, representing 9.4% annualized growth, which should drive simultaneous gains in share price and dividends.
