The stock market enjoyed a strong first half. The S&P 500 rallied nearly 15%, powered in part by growing optimism that the Federal Reserve will begin cutting rates this year.
Falling rates are one of the many catalysts ahead that could give stocks the power to rally in the back half of the year and beyond. Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A), and NextEra Energy (NYSE: NEE) stand out to a few Fool.com contributors for their compelling total-return potential these days. Here’s why they look like no-brainer buys heading into the second half of 2024.
Brookfield Renewable has a long runway for growth
Reuben Gregg Brewer (Brookfield Renewable): Right now the story with Brookfield Renewable is its dividend yield, which is 4.7% or so for the corporate share class and an even higher 5.5% for the partnership version. That disbursement has been increased regularly and within Brookfield Renewable’s target range of 5% to 9% growth each year. The whole company, meanwhile, is backed by Brookfield Asset Management, a Canadian asset manager with a successful history of investing in infrastructure on a global scale.
That last point is actually very important. Brookfield Renewable is playing the long game because it has the wherewithal to do so, both financially (it has an investment grade-rated balance sheet) and thanks to the backing of its well-heeled parent company. That should allow Brookfield Renewable to weather the swings in the clean energy sector in relative stride. That’s on full display today, given that Wall Street has grown disillusioned with clean energy plays like Brookfield Renewable. And it hasn’t stopped the company from continuing to push forward with its growth agenda.
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For example, at the end of 2023, Brookfield Renewable, in conjunction with Brookfield Asset Management, bought Duke Energy’s fairly large renewable-power business. And the transaction is expected to be immediately accretive, even during a time when Wall Street holds renewables in low regard. If Brookfield Renewable…
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