Sure, stocks don’t always deliver their strongest growth during the summer months. There’s a reason why the old adage to “sell in May then go away” became well known, even if it isn’t necessarily the best advice to follow.
For income-seeking investors, though, any time is a good time to scoop up shares of companies that offer attractive dividends. That’s especially the case when those companies also have strong growth prospects. Here are two dividend stocks checking off both boxes to buy hand over fist right now.
Brookfield Renewable (NYSE:BEP) (NYSE:BEPC) ranks as one of the top renewable energy providers in the world. The company operates hydroelectric, wind, solar, and storage facilities in Asia, Europe, North America, and South America.
It’s also one of the best renewable energy dividend stocks around. The company has increased its distribution by a compound annual growth rate (CAGR) of 6% over the last two decades.
You can invest in Brookfield Renewables in a couple of ways. Shares of the limited partnership (LP) trade under the ticker BEP and currently claim a dividend yield of a little over 3%. In 2020, the company set up a separate stock with the ticker BEPC to provide an alternative for investors who prefer to avoid some of the tax hassles associated with LPs. The dividend yield for this stock is 2.9%.
The distribution payment is the same for both stocks, but the yield is slightly different because of the different share prices. And it’s the same underlying business for both stocks.
That business is poised to deliver strong growth for years to come. Governments and companies across the world are increasingly focused on reducing carbon emissions. The U.S., Canada, European Union, and Japan set goals to cut emissions by roughly half by the end of this decade. These and other countries will turn to renewable energy sources to help meet these objectives.
Brookfield Renewable is in a great position to profit from the accelerating tailwinds. The company already has an installed capacity of around 21,000 megawatts. Its development pipeline includes projects totaling close to 27,000 megawatts.
Few dividend stocks offer a solid distribution track record and the almost slam-dunk growth prospects that Brookfield Renewable does, in my view. I think buying the stock will pay off nicely over the long run.
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