3 Great Energy Stocks to Buy This August

Core Viewpoint - Energy demand is increasing rapidly, creating favorable conditions for companies involved in hydrocarbon production and the transition to cleaner energy sources, which are expected to yield strong returns for investors [1]. Group 1: TotalEnergies - TotalEnergies is well-positioned for the clean energy transition, utilizing an integrated energy model that spans upstream, midstream, and downstream operations, providing investors with diversified exposure while mitigating the impact of volatile commodity prices [4]. - The company has increased its focus on renewable power and electric generation assets, unlike peers BP and Shell, which have scaled back their ambitions. TotalEnergies has maintained its dividend, even increasing it, recognizing its importance to investors [5][6]. - TotalEnergies offers a dividend yield of 6.4%, making it an attractive long-term investment option in the energy sector [6]. Group 2: NextEra Energy - NextEra Energy is experiencing rapid growth, with adjusted earnings per share rising by 9.4% in the second quarter, driven by its Florida electric utility and energy resources segment, which benefits from strong demand for renewable energy [7]. - The company projects adjusted earnings per share to grow by 6% to 8% annually through 2027, alongside an expected annual dividend growth of about 10% [8]. - Analysts anticipate a surge in U.S. power demand due to factors like AI data centers and electrification, positioning NextEra Energy to benefit significantly from this trend as a leader in renewable energy [9][10]. Group 3: Brookfield Renewable - The global energy transition is expected to continue despite political shifts, with renewable electricity generation projected to grow by nearly 90% from 2023 to 2030 [11]. - Brookfield Renewable is a diversified renewable energy company, generating over 40% of its cash flows from markets outside North America, with operations in hydropower, wind, solar, and energy storage [12]. - The company recently signed a hydro power agreement with Google to deliver up to 3,000 megawatts of hydroelectric power, and it reported a 10% year-over-year increase in funds from operations in the second quarter [13]. - Brookfield Renewable anticipates long-term growth in annual funds from operations per unit by over 10%, targeting 5% to 9% annual dividend growth, with a current yield of 4% [14].