In 2022, there are plenty of investment options for renewable energy growth stocks, but in this video clip from "The High Energy Show" on Motley Fool Live, recorded on Feb. 1, Fool contributors Travis Hoium, Jason Hall, and John Bromels list their top choices to consider for your portfolio.
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Travis Hoium: Let's turn gears a little bit and go with best growth stock in the renewable sector. Let's just go rapid-fire here. Start with you, Jason.
Jason Hall: I'm going to go with Atlantica Yield (AY 2.81%), I think is really interesting. This falls into the independent utility space. Operates wind and solar farms, sells the power on long-term contracts, they have some distribution. Algonquin Power (AQN) is a utility in Canada, that's their sponsor, their largest shareholder. They're really focused on development of these resources, and that means there's a good pipeline for Atlantica if they're sitting down. The ticker is AY, this is a dividend yield and a dividend growth play. I love the business. I think they've got a great partner that's sitting on deals, and all the tailwinds are there behind wind and solar to drive this business.
Hoium: John.
John Bromels: I'm a big fan and its prices recently gone down of NextEra Energy (NEE -0.63%). I'm going to share my screen to show this off. Was at one time, the largest publicly traded energy company in the world. You can see that little purple line poking out there above Exxon (XOM -0.53%) and Shell (SHEL -0.14%). But since has come down quite a bit in terms of market cap and price, so trading had a bit of a bargain. But I also want to just say, look at that dividend growth compared to the oil majors, 56% dividend growth over the last five years. Every year, big dividend increases, makes sense as a dividend stock and makes sense also as a growth stock as well.
Hoium: NextEra Energy is the utility company that owns the regulated utility, the unregulated utility and then a similar company to what Jason mentioned, NextEra Energy Partners (NEP 0.82%), which is the renewable energy asset owner that spits off dividends another growth dividend play in that same universe. There's a strange conglomeration of companies there.
Bromels: It's wild, but basically, yes, NextEra Energy owns Florida Power and Light, lots of Floridians, lots of air conditioning, lots of energy being used, and they use the money that they take from that regulated utility provider to fund investments in solar, and they sell their excess energy to other places.
Hoium: I'll just quickly say, I was going to bring up for solar great balance sheets, doubling their production over the next three years. Always been a great cash producer. They just seem to know exactly what they're doing, and as the solar manufacturing market consolidates, there are fewer and fewer players, margins are going up. I think that's really good business.
