Every Motley Fool investor these days needs at least one solid clean energy stock in their portfolio. If you’ve been hibernating this winter out of sheer terror for what’s outside, I don’t blame you. And in that case, you likely aren’t aware as to why a clean energy stock is a solid investment today.
Oil and gas has never been a more volatile investment. Despite the high prices you’re seeing at the pump, this isn’t a sign of strength. It’s a sign of the Russian invasion of Ukraine. Therefore, it’s a temporary circumstance that countries are already attempting to avoid in the future.
A shift away from fossil fuels It was already clear that countries needed to invest in clean energy stocks rather than oil and gas. This came from a moral obligation, however. And moral obligations cost money. But you know what’s proven to cost more? A war.
The Ukraine crisis turned the energy world on its head. European countries relying on Russian oil are now at the mercy of higher global prices. Therefore, these countries are now taking clean energy stocks very seriously when considering where to invest. After all, creating clean energy projects at home means zero dependence on outside nations.
But which to pick? Never mind which clean energy stock to pick; which clean energy project should you pick? There are so many renewable sources out there to choose from, but none of them are 100% perfect. In fact, many require the mining of lithium to support batteries that can be charged by the renewable energy.
Therefore, it’s perhaps a good idea not to get stuck on solar or wind or hydro. Instead, if Motley Fool investors want in on clean energy stocks, they should look for a company that supports pretty much any type of renewable energy.
The only one I’m buying With all this in mind, the best clean energy stock you could buy today has to be Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP). The company has a diverse portfolio when it comes to renewable energy. I mean this in two ways. First, it has a diverse set of projects, and these projects are around the world. Should another country go to war, it has other countries to pick up the slack.
And Brookfield continues to expand through acquisitions and organic growth. Its last earnings report came in with record results, with $934 million in funds from operations. That’s a 10% increase year over year. Furthermore, it still has $4 billion in liquidity on the books.
Furthermore, this is one of the clean energy stocks offering a solid dividend at 3.14% for investors. And that’s likely to only increase as it becomes one of the largest clean energy portfolios on the planet.
Foolish takeaway Brookfield stock is a solid investment for Motley Fool investors seeking entry into the space. It’s been on the market for decades, proving it can withstand the pressure and come out the other side stronger than ever. Shares are up 145% in the last five years and 508% since coming on the market back in 2004. That’s a solid compound annual growth rate of 11% as of writing. Investors can collect a stable dividend during this volatile time.
The post The Only Clean Energy Stock I’m Buying Today appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe owns Brookfield Renewable Partners. The Motley Fool has no position in any of the stocks mentioned.