The green energy sector is experiencing rapid expansion, driven by escalating global concerns about climate change, supportive government policies, and continuous technological innovation. This growth presents considerable investment opportunities but also significant challenges. While large-cap companies often capture much of the media attention, many promising green energy stocks with growth potential are waiting to be discovered. While these companies are making significant strides in renewable energy pr ...

If there's one theme in the energy sector that has gotten plenty of attention over the years, it is the global transition from dirty carbon fuels to cleaner alternatives. It is a very real phenomenon, though it is happening much more slowly than clean energy proponents would like. And that creates an interesting investment opportunity that even passive income investors who love high-yield dividend stocks can jump on.Here's why Enbridge (ENB -0.91%), TotalEnergies (TTE -3.15%), and Brookfield Renewable (BEP ...

Core Viewpoint - Dividend yields have been declining due to a strong stock market rally, with the S&P 500's yield dropping to approximately 1.2%, the lowest in about 20 years, down from 1.6% a year ago, despite the presence of attractive income opportunities in certain stocks [1] Group 1: Brookfield Renewable - Brookfield Renewable currently yields over 4.5% and has achieved a 6% compound annual growth rate in its dividend over the past 20 years [2] - The company anticipates annual growth of 5% to 9% in the future, supported by inflation-linked rate increases, margin enhancements, development projects, and M&A activities [3] - A significant backlog of development projects is expected to contribute an additional 4% to 6% to its funds from operations (FFO) per share each year through the end of the decade [3] Group 2: Chevron - Chevron currently yields just over 4% and has increased its dividend annually for 37 consecutive years, with an 8% increase earlier this year [4][5] - The company projects over 10% annual free cash flow growth through 2027, assuming oil prices average $60 per barrel, driven by a high-return capital program [5] - Chevron's strategy includes acquiring Hess, which could potentially double its free cash flow by 2027, while maintaining a strong balance sheet to support dividend growth and share repurchases [5] Group 3: Realty Income - Realty Income currently yields 5.5% and has increased its dividend for 30 straight years, with a 4.3% compound annual growth rate since going public [6][7] - The REIT expects to grow its adjusted FFO per share at a rate of 4% to 5% annually, supported by rent growth and acquisitions [7] - Realty Income has multiple funding sources for expansion, including internally generated cash flow, capital recycling, and access to private capital markets [7] Group 4: Verizon - Verizon currently yields more than 6% and has increased its dividend for 18 consecutive years, the longest streak in the U.S. telecom sector [8] - The company generates sufficient cash flow to invest in network expansion while maintaining a strong balance sheet [9] - Verizon's acquisition of Frontier Communications for $20 billion is expected to enhance its fiber network and earnings, supporting future dividend increases [10] Group 5: Summary of Top Dividend Stocks - Brookfield Renewable, Chevron, Realty Income, and Verizon are highlighted as top-tier dividend stocks with high-yielding payouts that are expected to continue growing, making them attractive options for dividend income this December [11]

Core Insights - Energy stocks have shown solid performance in 2023, with an average increase of 14% in the S&P 500, despite weaker oil and gas prices [1] - Energy demand is expected to grow in 2025 and beyond, making several energy stocks attractive long-term investments as 2024 concludes [2] Company Summaries Black Hills Corporation - Black Hills is a regulated utility serving 1.3 million customers across several states, focusing on reliable energy provision [3] - The company has a strong track record, increasing its dividend for 54 consecutive years and paying dividends for 82 years, qualifying it as a Dividend King [4] - With a solid investment-grade balance sheet and $4.3 billion in capital spending plans, Black Hills is well-positioned for growth, focusing on system modernization and capacity development [5] - The company offers a historically high dividend yield of 4%, significantly above the S&P 500's 1.2% and the average utility's 2.8% [6] Western Midstream Partners - Western Midstream Partners is projected to grow its adjusted EBITDA to $2.3 billion, an 11% increase year-over-year, and free cash flow is expected to rise by 19% to nearly $1.2 billion [7] - The company has improved its leverage ratio to 3.0 times, a 0.7x improvement from the previous year, aided by acquisitions and asset sales [8] - It has raised its quarterly distribution rate to $0.875 per unit, a 52% increase, resulting in a yield of over 9% [9] - The company plans to invest $700 million to $850 million in capital projects, enhancing its cash flow growth potential [10] - Western Midstream has the financial flexibility for further acquisitions and unit repurchases, supporting continued distribution increases [11] - The MLP structure offers significant tax advantages for investors [12] Brookfield Renewable - Brookfield Renewable is on track for a record year, with funds from operations (FFO) per unit growing by 7% year-to-date and 11% in Q3, targeting over 10% FFO growth in 2024 [13] - The company is capitalizing on asset recycling, generating nearly $2.3 billion from asset sales, which funds its growth initiatives [14] - Management anticipates 2024 will be its most successful year for asset recycling, with planned investments of $8 billion to $9 billion over the next five years, targeting at least 10% annual FFO growth and 5% to 9% annual dividend growth [15]

The utility sector rallied strongly in 2024, with the average utility stock yield falling from around 3.6% to the current rate of around 2.8%. While that's still better than the 1.2% you would collect from the S&P 500 index, you can do much better.For example, even after a rally, Black Hills Corporation (BKH 0.20%) still yields roughly 4%. And Brookfield Renewable (BEP 0.17%) (BEPC -1.25%) is yielding as much as 5.6%. Here's why each one is a no-brainer buy for income investors.Black Hills is a simple growi ...

Industry Overview - The energy industry is at a significant inflection point, transitioning to cleaner energy sources to address climate change and experiencing an expected surge in electricity demand driven by transportation electrification and increased digitalization, particularly from AI data centers [1] Investment Opportunities - Several energy stocks are highlighted as compelling buys, including Brookfield Renewable, Clearway Energy, and NextEra Energy, particularly for investors with $1,000 to invest [2] Brookfield Renewable - Brookfield Renewable is actively selling assets it deems attractive while reinvesting the proceeds into other clean energy investments, maintaining its opportunistic approach [3][4] - The company is leveraging its investment-grade balance sheet to recapitalize struggling businesses and improve their operational performance, leading to an 11% year-over-year growth in funds from operations (FFO) in Q3 2024 [5][6] - Investors can expect a yield of up to 5.6% from Brookfield Renewable, benefiting from its strategic positioning in the growing energy sector [6] Clearway Energy - Clearway Energy has successfully sold thermal assets for over $1.3 billion, reinvesting the capital into higher-return renewable energy projects, which enhances its growth visibility [7][8] - The company anticipates generating approximately $2.08 per share of cash flow available for distribution (CAFD) next year, supporting dividend growth within a target range of 5% to 8% annually [8][9] - Clearway expects to grow its CAFD per share by 7.5% to 12.5% by 2026, which should facilitate a 6.5% dividend increase in that year [9][10] - The company projects a 5% to 8%+ annual growth rate for CAFD per share starting in 2027, maintaining a reasonable payout ratio of 70%-80% [10][11] - Clearway currently offers a 6% yield, indicating that a $1,000 investment could yield $60 annually, with potential for double-digit total annual returns [12] NextEra Energy - The Department of Energy forecasts a 15% to 20% increase in U.S. power demand over the next decade, with clean energy resources expected to meet this demand, positioning NextEra Energy favorably [13] - As the largest utility in the U.S. and the world's leading producer of wind and solar energy, NextEra plans to invest nearly $100 billion from 2024 to 2027 to double its renewables and storage capacity [14][15] - Management projects adjusted earnings per share (EPS) growth of 6% to 8% through 2027 and nearly 10% growth in dividends per share through 2026 [15] - NextEra has historically delivered strong returns, with adjusted EPS and dividends growing nearly 9% and 10%, respectively, from 2003 to 2023, indicating a continuation of this trend [16]

Mr. Market, a construct of the famous value investor Benjamin Graham, is a fickle individual. Sometimes he offers up opportunities that look attractively priced, only to change his mind far more quickly than you'd expect, running the price right back up again. When shopping for potential investments, I occasionally get access to the attractive price, which is what happened with my investment in WEC Energy (WEC -0.30%). But after the subsequent share price rally over just a few months, I decided to sell the ...

The U.S. power sector is at an inflection point. After barely growing over the last 20 years, electricity demand in the country is on track to surge over the next two decades. That should power explosive growth in renewable energy. Few companies are in a better position to capitalize on the expected surge in U.S. power demand than NextEra Energy (NEE 0.05%) and Brookfield Renewable (BEPC -0.13%) (BEP -1.07%). That makes them no-brainer stocks to buy to cash in on the resurgence in the U.S. power sectors. Ey ...

Core Viewpoint - The article emphasizes the value investing approach focused on high-yielding dividend stocks, contrasting with the trend of chasing high-performing stocks. Group 1: Investment Strategy - The investment service promotes a value investing strategy that prioritizes high-yield dividend stocks, suggesting that this approach can lead to better long-term performance compared to chasing recent high performers [1]. - The service claims to have consistently outperformed the market since its inception, indicating a strong track record in identifying profitable investment opportunities [1]. Group 2: Service Features - The investment service is noted for its rapid growth and high customer satisfaction, achieving a perfect rating of 5/5 from 180 reviews, which highlights its effectiveness in delivering high-yield strategies [2]. - Members of the service report benefiting from comprehensive research and unique investment ideas, particularly in identifying lesser-known opportunities rather than just popular high-yield stocks [4]. - The service emphasizes a balanced, evidence-based approach to stock analysis, which is beneficial for income investors seeking sustainable yields without excessive risk [3].

Dividend stocks can be fantastic long-term investments. Over the past 50 years, the average dividend stock in the S&P 500 has outperformed nonpayers by more than 2-to-1. The best returns have come from companies that consistently increase their dividends. There's a long list of great dividend growth stocks. Realty Income (O -1.46%) and Brookfield Renewable (BEP 0.08%) (BEPC 1.37%) currently top my list as the best ones to buy right now. They offer high dividend yields and healthy growth prospects. Those fac ...