
The world will need a lot more energy in the future. New technologies, population growth, and an expanding middle class are all fueling the need for more energy. While cleaner sources like renewables will likely supply much of this new capacity, fossil fuels will also continue playing a vital role in fueling the global economy.
There are many ways to capitalize on the growing need for energy. Brookfield Renewable (NYSE: BEP)(NYSE: BEPC), Kinder Morgan (NYSE: KMI), and Chevron (NYSE: CVX) stand out to a few Fool.com contributors as some of the best options. These energy stocks all pay growing dividends, which will enable investors to cash in on the growing need for energy.
A high yield and a bright future
Reuben Gregg Brewer (Brookfield Renewable): If you like dividends, you’ll love Brookfield Renewable. It comes in two different flavors: a limited partnership with a 5.3% yield and a corporate share class with a 4.5% yield.
The two share classes represent the same exact entity, with the yield difference entirely driven by the popularity of that corporate structure. But what exactly do they represent?
Brookfield Renewable is run by Brookfield Asset Management and owns an actively managed portfolio of renewable power assets. That includes hydroelectric, solar, wind, and batteries. Basically, it gives you exposure to all of the important clean energy categories. Its portfolio is also spread across the globe, providing geographic diversification as well. It’s kind of a one-stop shop for clean energy.
But the key is that Brookfield Renewable is actively managed. It likes to buy assets on the cheap, increase their value by investing in them, and then sell them when they are dear. The proceeds are put back into new investment opportunities.
This is not a typical energy investment, it is more like a clean energy hedge fund. But clean energy demand is growing rapidly, so there’s a huge growth runway for Brookfield Renewable.
It’s worth a deep dive for dividend investors who can think outside the typical energy box. Notably, the payout has been increased regularly for years at…
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