2 No-Brainer Energy Stocks to Buy With $1,000 Right Now

Industry Overview - The world is expected to double its electricity-generating capacity in the next 20 years to meet rising demand from electric vehicles and data centers while replacing about half of the current capacity due to age and carbon emissions [2] - This scenario indicates a significant increase in power generation capacity, with renewable energy likely leading the growth [2] Company Analysis: Brookfield Renewable - Brookfield Renewable is a major global producer of renewable energy, operating 34 gigawatts (GW) of capacity, sufficient to power over 25 million homes [4] - The company benefits from stable cash flow through long-term, fixed-rate power purchase agreements, currently yielding over 4.5% in dividends [5] - Brookfield Renewable anticipates a 5% to 9% annual growth in dividends, driven by organic growth and acquisitions, projecting over 10% growth in funds from operations (FFO) per share through 2028 [6] - The company has a pipeline of 230 GW in future renewable energy projects, with 65 GW in advanced stages, aiming to develop about 10 GW annually [7] - Brookfield is enhancing growth prospects by acquiring Neoen, a European renewable energy company with 8 GW of operating projects and 20 GW in advanced development [8] Company Analysis: Clearway Energy - Clearway Energy is a leading clean power producer in the U.S., with 9 GW of renewable energy and natural gas capacity, generating predictable cash flow and offering a dividend yield of 5.5% [9] - The company expects to grow its dividend payout by 5% to 8% annually through 2026, supported by a capital recycling strategy that reinvests proceeds from thermal assets into renewable energy [10] - Clearway Energy is acquiring operating projects to enable further capacity growth, providing visibility into cash flow per share growth [11] - The company is recontracting its natural gas capacity at favorable rates, which could support dividend growth, and has the financial capacity to continue acquiring renewable energy projects [12] Investment Potential - The increasing global demand for renewable energy aligns with the strategies of Brookfield Renewable and Clearway Energy, positioning them for robust earnings growth and healthy dividend increases [13]